Hike in inflation to 1.5 pct in October

Hike in inflation to 1.5 pct in October
During the month of October, a hike was seen in the rate of inflation. As per the Office for National Statistics, a hike by 1.5% was witnessed in consumer price inflation last month, as expected with the consensus forecast, from a five-year low of 1.1 percent in September.

A notable pick-up in near-term inflation was displayed by quarterly forecast of Bank of England policymakers last week, and the there is a little chance that the policymakers will be concerned by the figures. 

As per some economists, inflation can even hit 3 per cent at the commencement of next year due to the reversal of the temporary cut in value-added tax. 

As per ONS, the hike in October was because of the statistical impact of a record sink in prices of fuel in October 2008 not being repeated this year.  

It were the fuels and lubricants, which brought the largest upward effect within transport, as there prices dropped by 0.7 percent on the month in October; however plunged 6.1% last October. 

The fastest annual rate hike was seen in the price of second-hand cars on record at 13.2 percent. Furthermore, the index was also pressurized upwards by the air fares. 

“Retail Price Inflation, a gauge that includes housing costs and is used as the basis for many wage deals, came in at -0.8 percent from -1.4 percent in September,” said the official data.