Inflation driven to a five-year high this year
The Consumer Price Index rose to a five-and-a-half-year high of 3 per cent in the year to October, the Office for National Statistics (ONS) said today, which is equal to the rate of growth in September.
The price of food and non-alcoholic drinks rose at an annual rate of 4.1 per cent, the highest since September 2013.
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According to reports, inflation has been driven to a five-year high this year also due to the impact of the slump in sterling in the wake of the Brexit vote in June 2016. This has pushed up import prices, which have been passed on to consumers in the form of higher prices in the shops and for services.
While food price inflation picked up last month, this was offset by the falling cost of motor fuel and lower furniture prices, the ONS added.
The Bank of England had also raised interest rates earlier this month, from 0.25 per cent to 0.5 per cent, in order to stop inflation getting out of hand over the coming years.