By Daniel Hunter
Figures released today (Tuesday) have revealed that UK inflation rose to 1.3% in October from 1.2% the previous month.
Official data released by the Office for National Statistics shows that smaller falls in transport costs — notably for motor fuels and air fares, and price rises for computer games were the main contributors to the rise in the rate of inflation.
David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: “Although inflation edged up slightly in October, the impact of low oil prices will have a noticeable impact in coming months, causing inflation to drop. We expect inflation to fluctuate around 1.0% until late 2015, before rising towards 2.0% in 2016.
“Businesses will be pleased by last week’s inflation report which indicated that interest rate increases are unlikely to be on the agenda until mid-2015. With this uncertainty out of the way, the MPC and the government must focus on implementing measures that boost business confidence and investment.”
Join us on