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| UK inflation at 1% as price of clothes and fuel rises | |
| (35 minutes later) | |
| The UK inflation rate rose to 1.0% in September, up from 0.6% in August, according to official figures. | The UK inflation rate rose to 1.0% in September, up from 0.6% in August, according to official figures. |
| It was the biggest monthly rise in the cost of household items in more than two years, the Office for National Statistics (ONS) said. | It was the biggest monthly rise in the cost of household items in more than two years, the Office for National Statistics (ONS) said. |
| Rising prices for clothing, hotel stays and motor fuel led to the rise in the Consumer Prices Index (CPI). | Rising prices for clothing, hotel stays and motor fuel led to the rise in the Consumer Prices Index (CPI). |
| However, the ONS said there was "no explicit evidence" the lower pound was increasing prices of everyday goods. | However, the ONS said there was "no explicit evidence" the lower pound was increasing prices of everyday goods. |
| Most of the rise in inflation was due to the biggest monthly jump in clothing prices since 2010 and a rise in fuel costs, which had been falling a year earlier. | Most of the rise in inflation was due to the biggest monthly jump in clothing prices since 2010 and a rise in fuel costs, which had been falling a year earlier. |
| The rise in the inflation rate from 0.6% to 1.0% was the biggest month-on-month jump since June 2014. | The rise in the inflation rate from 0.6% to 1.0% was the biggest month-on-month jump since June 2014. |
| The 1% rate is the highest since November 2014. However, ONS head of inflation Mike Prestwood said it was "low by historic standards". | The 1% rate is the highest since November 2014. However, ONS head of inflation Mike Prestwood said it was "low by historic standards". |
| 'Certain to rise' | 'Certain to rise' |
| Economists have predicted that prices will rise further, particularly when the fall in the pound makes food and clothing more expensive. | Economists have predicted that prices will rise further, particularly when the fall in the pound makes food and clothing more expensive. |
| Howard Archer, chief economist at IHS Global Insight, said: "Consumer price inflation was actually prevented from climbing higher still in September by a dip in food prices, but that looks certain to imminently come to an abrupt end and turn around as a factor." | Howard Archer, chief economist at IHS Global Insight, said: "Consumer price inflation was actually prevented from climbing higher still in September by a dip in food prices, but that looks certain to imminently come to an abrupt end and turn around as a factor." |
| Others said the UK was on course to exceed the Bank of England's target of a 2% inflation rate next year. | Others said the UK was on course to exceed the Bank of England's target of a 2% inflation rate next year. |
| Ben Brettell, senior economist at Hargreaves Lansdown, said: "Inflation looks certain to rise further over the coming months, and could easily exceed the 2% target in 2017. | Ben Brettell, senior economist at Hargreaves Lansdown, said: "Inflation looks certain to rise further over the coming months, and could easily exceed the 2% target in 2017. |
| "This will undoubtedly be tough on those with low incomes, and it's also not good news for savers who are losing money in real terms." | "This will undoubtedly be tough on those with low incomes, and it's also not good news for savers who are losing money in real terms." |
| The Retail Prices Index (RPI) measure of inflation, which includes mortgage interest payments, rose to 2.0% in September from 1.8% in August. | The Retail Prices Index (RPI) measure of inflation, which includes mortgage interest payments, rose to 2.0% in September from 1.8% in August. |