UK inflation at highest in over 5 years

The UK’s key inflation rate hit its highest for more than five years in September.

Inflation was driven up by increases in transport and food prices.
The fall in the pound since last year’s Brexit vote and an increase in transport and food prices has driven the inflation rate up to its highest point in over five years. The Consumer Price Index has climbed to 3%. This could lead to an increase in interest rates next month which is currently at 0.25%.
State pension payments from April 2018 will rise in line with September’s CPI. The full new state pension is £159.55 per week, equivalent to £8,296.60 per year.
RPI remains at its highest since 2012 Business rates will go up by September’s Retail Prices Index (RPI) of 3.9%.
Mike Prestwood said: “Food prices and a range of transport costs helped to push up inflation in September. These effects were partly offset by clothing prices that rose less strongly than this time last year.”
Inflation is now 0.9% above the rate of wage growth – meaning that the incomes squeeze is becoming tighter. With poor economic growth figures and uncertainty over the Brexit process, the Bank of England’s decision on whether to raise interest rates next month is finely balanced.