UK inflation begins to climb
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The rate of UK annual inflation has risen for the first time since February, figures from the Office for National Statistics reveal.
The government’s target measure of inflation, the Consumer Prices Index, was 1.5% in October, up from 1.1% in September.
The CPI rate of inflation has been dropping steadily since February, when the rate was 3.2%.
The government aims to maintain the CPI measure of inflation at 2%.
The rise was driven by increasing transport costs, in particular the rising cost of second-hand cars.
DVDs and computer games also pushed the CPI upwards, as well as the rising cost of food.
Downward pressures include the falling cost of mortgage arrangement fees and bank overdraft charges.
Another measure of annual inflation, the Retail Prices Index, which includes housing and mortgage costs, fell by 0.8% in October compared with a 1.4% drop in September.
Despite the annual fall RPI was nudged by house prices, which are increasing this year but were falling a year ago.
RPIX inflation, which cover all the items measured in the RPI but strips ou mortgage interest payments - was 1.9% in October, up from 1.3% in September.
The measurement of mortgage interest payments within the RPI may be subject to change depending on an ongoing public consultation.
A public consultation of a proposed change to the measurement of Mortgage Interest Payments within the RPI is currently underway.
The Consumer Prices Advisory Committee is recommending the ONS measures interest payments based on Average Effective Rate, rather than the SVR and that this rate of measurement rate should be kept under review in future.
The deadline for consultation responses is January 22 2010 with the ONS planning to implement the recommended changes in March 2010.
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