ONS: CPI grows by 1.3%

Latest data from the Office for National Statistics has shown that the Consumer Prices Index grew by 1.3% in the year to October 2014, up from 1.2% in September.

Related topics:  Finance News
Rozi Jones
18th November 2014
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The biggest contributers to the 0.1% increase include transport, recreation and culture and household equipment.

Smaller falls in transport costs than a year ago – notably for motor fuels and air fares, and price rises for computer games also contributed to the rise in the rate of inflation.

Food and motor fuel prices, which have historically been upward contributors to the 12-month CPI rate, are currently reducing it by 0.3 percentage points.

An HM Treasury spokesperson said:

"The government's long term economic plan is working, with inflation falling by three quarters since its peak in September 2011 and pay cheques rising.

"But the effects of the great recession are still being felt and so we have taken continued action to help with the cost of living, including cutting income tax, freezing fuel duty and reducing the costs of childcare. The job is not yet done and the biggest risk to the recovery would be abandoning the long-term economic plan that is delivering economic security."

Ian Stewart, chief economist at Deloitte, commented:

“Today’s inflation numbers were a tad above expectations. But the big picture is that, after six years of stubbornly high inflation, the UK is seeing a major easing of price pressures.

“Low inflation is likely to ride to the rescue of the UK consumer in 2015, providing vital support for spending and for GDP growth.”

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