This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-41982269
The article has changed 8 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
UK inflation holds steady at 3% | UK inflation holds steady at 3% |
(35 minutes later) | |
The UK's key inflation rate remained steady at a five-and-a-half-year high of 3% in October, according to official figures. | The UK's key inflation rate remained steady at a five-and-a-half-year high of 3% in October, according to official figures. |
Falls in fuel prices were offset by higher food costs, in particular those for potato crisps, the Office for National Statistics (ONS) said. | |
The Consumer Prices Index (CPI) had been expected to rise, with the Bank of England forecasting it would peak at 3.2% this autumn. | |
The government's target for CPI is 2%. | |
If the CPI inflation rate had risen above 3%, Bank of England governor Mark Carney would have had to write to the chancellor explaining why it was so far above target. | |
The ONS said the inflation rate for food and non-alcoholic drinks was 4.1% last month, its highest since September 2013. | |
However, this was offset by the falling cost of motor fuel and lower furniture prices. | |
The fall in the value of the pound since last year's Brexit referendum has contributed to the recent pick-up in inflation, as it has increased the cost of imported goods and services. | |
However, Chris Williamson, chief business economist at IHS Markit, said the latest inflation figures "will add to the sense that the worst of this impact has already passed". | |
"Data on company costs, which tend to change ahead of changes in consumer prices, are already shown signs of having peaked earlier in the year," he added. | |
Earlier this month, the boss of Sainsbury's told the BBC that the UK was "probably through the worst" of the impact of the weaker pound on food inflation. | |
October's Retail Prices Index (RPI), a separate measure of inflation, was 4%, up from 3.9% in September. |