UK inflation rose last month, with energy prices in part to blame, according to new figures from the Office for National Statistics (ONS).
Measured by the Consumer Prices Index (CPI), inflation ticked up by 2.3% in the 12 months to October 2024, up from 1.7% in September, and ahead of expectations of a 2.2% rise.
The largest upward contribution to the change came from housing and household services, mainly because of electricity and gas prices. The largest offsetting downward contribution came from recreation and culture.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, rose by 3.3% in the 12 months to October 2024, up from 3.2% in September.
Alpesh Paleja, Interim Deputy Chief Economist, CBI, said: “Inflation was always expected to pick up in October, but the increase was bigger than the Bank of England had expected.
“We’ll continue to see bumpier inflation over the coming months, as more base effects play out in the data. But the big picture should still remain one of headline inflation being much lower than this time a couple of years ago.
“Despite the upside surprise in today’s data, the Bank is still likely to continue cutting rates at a gradual pace going forward. However, renewed price pressures from the fiscal loosening in October’s Budget means that the CPI rate is likely to stay above the 2% target for longer than previously expected.
“Coupled with continued strength in services price inflation and wage growth, this all but rules out the prospect of a faster pace of rate cuts in the year ahead.”
