The rate of Consumer Prices Index (CPI) inflation in the UK rose to 5.2% in September from 4.5% the month before with an increase in energy bills being responsible for a large proportion of the rise.
The 5.2% rate is the highest CPI rate since the measure was introduced fourteen years ago. The Retail Prices Index (RPI) - which includes mortgage interest payments - rose to 5.6% from 5.2% in the previous month.
Gas and electricity costs have risen just under 10% in the past month and are up just over 18% on the year. Transport has risen 12.8% on the year and food has risen 6%.
Although the Bank of England’s second round of quantitative easing is inflationary [see earlier story], the Bank continues to maintain that inflation will start to fall early in 2012.
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