Rising clothing & food prices drives up inflation

Inflation jumps after rising clothing and food prices
The rise in inflation surpassed the expectations of analysts, who had predicted it would stay flat at 0.5%.
// ONS says CPI inflation rose to 0.7% in October, compared to 0.5% in September
// The rise in clothing and food prices played a role in driving up inflation
// The RPI, a separate measure of inflation, was 1.3% in October, rising from 1.1% in September

UK inflation bounced higher last month as the price of food and clothing went up, according to official figures.

The ONS said Consumer Prices Index (CPI) inflation rose to 0.7 per cent in October, compared to 0.5 per cent in September.

It surpassed the expectations of analysts, who had predicted that inflation would stay flat at 0.5 per cent for the month.


“The rate of inflation increased slightly as clothing prices grew, returning to their normal seasonal pattern after the disruption this year,” ONS deputy national statistician for economic statistics Jonathan Athow said.

“The cost of food also nudged up, while second-hand cars and computer games also all saw price rises.

“These were partially offset by falls in the cost of energy and holidays.”

Economists at the ONS said clothing and footwear prices increased by 2.5 per cent for the month, rebounding after a period of heavy discounting through the summer as stores tried to attract more customers in the face of restrictions.

Food inflation was another key driver of rising inflation, as prices bounced back from deflation in September.

The ONS said it was particularly caused by an increase in the price of vegetables and fruit.

Transport and vehicle prices also pushed higher, as the price of second-hand cars rose by 1.4 per cent, with new car prices up 0.5 per cent as demand for cars improved in the face of guidance to avoid public transport.

The largest downward pressure on inflation was caused by a fall in household energy prices.

It revealed that gas prices dived by 12.3 per cent and electricity prices slumped 3.2 per cent between September and October.

The Retail Price Index (RPI), a separate measure of inflation, was 1.3 per cent in October, rising from 1.1 per cent in the previous month.

Meanwhile, the CPI, including owner-occupiers’ housing costs (CPIH) – the ONS’s preferred measure of inflation – was 0.9 per cent last month, up from 0.7 per cent in September.

with PA Wires

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