UK inflation rate 'beginning to rise'

Tuesday 17th November 2009

The Office of National Statistics (ONS) has said a key measure of UK inflation has risen for the first time since February.

A rise of 1.5 per cent was seen in the Consumer Prices Index (CPI) in October, up from 1.1 per cent in September, while the Retail Prices Index (RPI) also rose, from minus 1.4 per cent to minus 0.8 per cent.

The ONS said: "By far the largest upward pressure affecting the change in the CPI annual rate came from transport. The largest upward effect within transport came from fuels and lubricants, where prices fell by 0.7 per cent between September and October this year but fell by a record (for a September to October period) 6.1 per cent a year ago.

"The large fall in 2008 was due to sharp falls in petrol and diesel prices, reflecting the falling price of crude oil in the latter half of 2008."

In recreation and culture, the largest upward effects came from recording media and, to a lesser extent, from games, toys and hobbies. Within recording media the largest upward contribution came from DVDs.

Within food the largest upward effect came from meat (particularly pork products) with the next most significant upward contributions coming from bread and cereals and vegetables.

Communication, where prices rose between September and October this year by more than a year ago, mainly due to increases in landline telephone charges, the ONS said.

The rise in the RPI - the biggest monthly rise since 1990 - was due in part to the fact that house prices are currently rising, but were falling last year.

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