Inflation has risen back above the Bank of England’s 2 per cent target after a rise in energy bills, official figures show.
The consumer prices index (CPI) rose to 2.3 per cent in October, according to the Office for National Statistics (ONS).
Much of the increase in CPI came from the 9.5 per cent rise in the energy price cap that came into force on 1 October.
The jump in inflation, which was stronger than analysts expected, comes after CPI fell to a three-year low of 1.7 per cent in September — the first time the rate of price rises dropped below the Bank of England target in three years.
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ONS chief economist Grant Fitzner said: “Inflation rose this month as the increase in the energy price cap meant higher costs for gas and electricity compared with a fall at the same time last year.”
“These were partially offset by falls in recreation and culture, including live music and theatre ticket prices.
“The cost of raw materials for businesses continued to fall, once again driven by lower crude oil prices.”
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The announcement is likely to reduce the already low chances of another base rate cut. The next base rate decision is on 19 December, with one more set of inflation data before then.
Responding to the new data, chief secretary to the Treasury Darren Jones said there was “more to do” to ease cost-of-living pressure in the UK.
Jones said: “We know that families across Britain are still struggling with the cost of living.
“That is why the budget last month focused on fixing the foundation of our economy so we can deliver change. That includes boosting the national minimum wage, freezing fuel duty and protecting working people’s payslips from higher taxes.
“But we know there is more to do. That is why the government is focused on economic growth and investment so we can make every part of the country better off.”
Josh Self is Editor of Politics.co.uk, follow him on Bluesky here.
Politics.co.uk is the UK’s leading digital-only political website. Subscribe to our daily newsletter for all the latest election news and analysis.
