Petrol price rises push UK inflation above 2%
The impact of soaring petrol costs drove inflation back above the Bank of England’s 2% target in October, official figures showed today.
Consumer Prices Index (CPI) inflation reached 2.1% last month – higher than the 1.9% expected by economists and back above the Bank’s benchmark for the first time since June, according to the Office for National Statistics (ONS).
The stronger-than-anticipated figures all but end borrowers’ hopes for an interest rate cut this year, as the Bank’s battle against inflation continues despite signs of a slowing UK economy.
Petrol prices rose by an average 2.7p a litre to 94p in October thanks to an increase in government fuel duties, although petrol costs have also come under pressure from a spike in oil prices to record levels.
