LONDON: Consumer price inflation rose in September, hitting a two-year high, according to official data. The Office for National Statistic said the annual rate of CPI inflation was 1 per cent, up from 0.6 per cent in August and slightly higher than City of London analysts had been expecting. This is the biggest monthly rise in the cost of household goods and services since November 2014.
The data could suggest the sharp fall in the value of the pound following the June referendum is already pushing up the imports costs of domestic manufacturers, which is likely to feed through into UK consumers prices in the coming months. However, the ONS said there was “no explicit evidence” that the the weaker pound was increasing prices of every day goods.
UK inflation was driven up mainly by rising prices for clothing, overnight hotel stays and motor fuels, according to ONS data. Clothes prices jumped by 6 per cent in September, compared to August. Fuel prices rose to a faster pace compared with the same month a year ago.
