CPI inflation creeps up to 0.7 per cent putting more pressure on families as prices of food and clothing rise
- The headline CPI inflation rate rose from 0.5 per cent to 0.7 per cent in October
- Clothing and food prices were the main cause of the increase, the ONS said
- The rise confounded the expectations of analysts who had predicted flat month
Inflation crept up last month as rising food and clothing prices put more pressure on families.
The headline CPI rate went up from 0.5 per cent to 0.7 per cent in October, although it remains well below the Bank of England‘s 2 per cent target.
The increase was above the expectations of analysts, who had predicted that inflation would stay flat.
ONS Deputy National Statistician for Economic Statistics Jonathan Athow said: ‘The rate of inflation increased slightly as clothing prices grew, returning to their normal seasonal pattern after the disruption this year.
‘The cost of food also nudged up, while second-hand cars and computer games also all saw price rises.
‘These were partially offset by falls in the cost of energy and holidays.’
The headline CPI rate went up from 0.5 per cent to 0.7 per cent in October, although it remains well below the Bank of England ‘s 2 per cent target
The ONS said rising food and clothing prices were the main reasons behind the increase
The ONS said the largest contributions to the index came from clothing, food, furniture, furnishings and carpets.
The upward pressure was partly offset by dips in costs of recreation, cultural activities and transport.