The September 2011 CPI figure released today shows inflation at 5.2 %. This figure is important as it is the September figure which is the basis for increases in most benefits the following April.

More here:

www.bbc.co.uk/news/business-15344297

The rate of Consumer Prices Index (CPI) inflation in the UK matched its record high in September, rising to 5.2% from 4.5% the month before.
An increase in energy costs was behind a large proportion of the rise.
The 5.2% rate is the highest CPI measure since September 2008, and it has never been higher since the CPI measure was introduced in 1997.

The Retail Prices Index (RPI) - which includes mortgage interest payments - rose to 5.6% from 5.2%.

The latest RPI measure is the highest annual rate since June 1991.
The Office for National Statistics, which released the data, said in a statement: "​By far the largest upward pressure to the change in CPI... came from increases in gas and electricity charges.

"​There were also large upward pressures from air transport and communication services."​

Bills for gas, electricity and other fuels were up 18.3% on the year, while transport costs rose 12.8%. Food prices were 6% higher than last year.
The CPI measure is way ahead of the Bank of England'​s target rate of 2%. However, Bank governor Mervyn King still expects inflation to begin falling next year, once factors such as January'​s VAT rise drop out of the equation.

Pensioners But the rise in the cost of living highlights the risk of the Bank'​s latest move to revive the economy through further quantitative easing, which could help to stoke inflation.

September'​s CPI is key because it will be used to set the amount by which the state pension and Jobseekers'​ Allowance will rise next April.

Comments

Write comments...
or post as a guest
Loading comment... The comment will be refreshed after 00:00.

Be the first to comment.

We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.