Uni fees force inflation to 2.7%

The cost of goods and services in the UK has jumped to 2.7%, according to the latest consumer price index (CPI) reading.

Inflation jumped from 2.2% in September, and was pushed up in October because of the price of university tuition fees was a key driver of the increase, the Office for National Statistics said.

The cost of food followed closely behind.

Chris Williamson, of Markit Economics, said the Bank of England is likely to react accordingly and cut its expectations going forward.

He said: 'UK inflation jumped higher in October, and further price hikes in coming months suggest that the rising cost of living will continue to act as a drag on economic growth,causing the Bank of England to revise down its growth projections, which will in turn raise the perceived need for further stimulus.'