UK inflation hits three per cent

Today (17th October 2017) the Office for National Statistics annoucned that inflation had reached a five and a half year high.

Emmanuel Afoakwah, investment analyst at Redmayne-Bentley, said: “Consumer prices rose by 3 per cent in September, an increase on August’s 2.9 per cent.  Housing and household services costs were the major contributors to September’s rising inflation, with food prices also making a significant contribution.

“This consumer price inflation figure illustrates the ongoing squeeze on British workers, particularly when considering average wages have risen 2.1 per cent in the three months to July when compared to the previous year. Furthermore, the retail prices index increased by 3.9 per cent in September, meaning that UK firms will be subjected to a 3.9 per cent rise in business rates next year. However, these figures may be more positive news for pensioners, who stand to receive a 3 per cent increase in the basic state pension next April under the triple-lock system.

“These high inflation figures will add to mounting pressure on Bank of England policymakers to raise interest rates in November.”