Investments  

UK inflation rises to 1.3% in October

The rate of UK inflation rose slightly in October, but remains substantially below the Bank of England’s 2 per cent target.

Data from the Office for National Statistics (ONS) shows that consumer price inflation in October was 1.3 per cent, a rise from 1.2 per cent in the previous month.

The figure reversed the downward trend seen in the rate of inflation in recent months, which had led to fears of deflation.

Article continues after advert

The ONS said inflation ticked upwards because the comparative fall in the prices of fuel and food from a year ago were not as strong as in September.

But it pointed out the two sectors were still proving to be a headwind for inflation as prices declined by 0.3 per cent year on year.

Samuel Tombs, senior UK economist at Capital Economics, said the rise in inflation was “likely to be a blip”.

He said the “slight easing of the rate of fuel price deflation” would only be temporary because the recent sharp fall in the price of oil could knock 2 percentage points off inflation by December.