(ONS) UK Consumer Price Index jumped by a decade record 4.2% in the 12 months to October, higher than 3.1% posted in the previous month. The inflation increase was higher than the expected surge of 3.9%.
Including owner occupiers’ housing costs, consumer prices rose by 3.8% in the 12 months to October, compared to an increase of 2.9% in the previous month.
On a monthly basis, UK CPI rose by 1.1% in October.
Housing and household services contributed the highest increase in CPIH, with a gain of 1.23 percentage points. Transport led to a 1.08 percentage points increase in CPIH while restaurants and hotels contributed a 0.43 percentage points increase.
The rising inflation is considered a trigger in potential policy tightening by the Bank of England. The bank expects inflation to rise to about 5% in the spring of next year before moderating to its target of 2% in late 2023.
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