London, United Kingdom (4E) – The UK’s consumer price index (CPI), which measures the country’s inflation rate, inched higher in October from the previous month, according to official data.
The Office for National Statistics (ONS) reported said that CPI increased to a seasonally adjusted 2.7 per cent rate in October compared to 2.2 per cent in September. The result is higher than analysts’ estimate of 2.3 per cent CPI rise in October.
Inflation rose 0.1 per cent month-over-month, which is lower than the estimated 0.2 per cent increase, following a 0.4 per cent rise in September.
The inflation rate is higher than the 2.0 per cent target set by the Bank of England (BoE), although not high enough to warrant an action by Chancellor of the Exchequer since inflation rate did not go above or below one percentage point its target.
The education sector provided the main upward pressure on consumer prices due to rising university tuition fees, according to the ONS. Downward pressures came from recreation, housing and household services and miscellaneous goods and services, while transport, food and non-alcoholic beverages contributed smaller upward pressures.
For October, core CPI grew at a seasonally adjusted rate of 2.6 per cent, higher than the estimated 2.2 per cent gain. Core CPI, which rose 2.1 per cent in September, does not include food, tobacco, alcohol and energy.