Britain's inflation rate accelerated in October, as expected, after a sharp fall in transport costs last year was not repeated, official data showed today.
The Office for National Statistics said consumer price inflation rose to 1.5 per cent last month, in line with the consensus forecast, from a five-year low of 1.1 per cent in September.
The figures are unlikely to cause undue concern to Bank of England policymakers whose quarterly forecasts last week showed a sharp pick-up in near-term inflation.
Some economists reckon inflation could even hit 3 per cent at the start of next year as a temporary cut in value-added tax is reversed.
The ONS said October's pick-up was due to the statistical impact of a record fall in fuel prices in October 2008 not being repeated this year.
The largest upward effect within transport came from fuels and lubricants where prices fell by 0.7 per cent on the month in October but fell 6.1 per cent last October.
The price of second-hand cars rose at the fastest annual rate on record at 13.2 per cent. Air fares also put upward pressure on the index.
Retail Price Inflation, a gauge that includes housing costs and is used as the basis for many wage deals, came in at -0.8 per cent from -1.4 per cent in September.
Reuters