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Inflation rises to 2.7% in October

by William Robins on Nov 13, 2012 at 10:00

The consumer prices index (CPI) inflation measure has risen to 2.7% this month, due in part to the hike in university tuition fee.

CPI has risen over October after a fall to 2.2% in September 2012, the lowest it had been since November 2009, according to the Office of National Statistics (ONS).

Since April 2011, the CPI has also been used for the indexation of benefits, tax credits and public service pensions.

The CPI rate is taken from furniture, household equipment and maintenance, housing and household services (particularly domestic gas) and clothing and footwear prices.

ONS figures also showed:

Food and non-alcoholic beverages was the second largest contributor to the increase, particularly potatoes, fruit and confectionery
The Retail Prices Index (RPI) annual inflation rose to 3.2% in October 2012, up from 2.6% in September. The main contributors to the change are the same as the CPI, with the addition of housing.