Clothing and food prices lift inflation

CPI inflation creeps up to 0.7 per cent as prices of food and clothing rise

Inflation rises on back of increasing cost of clothing and food | ITV News

Meanwhile, the CPI including owner occupiers' housing costs (CPIH) 12-month inflation rate jumped to 0.9 percent in October, up from 0.7 percent in September, said the ONS.

The rise in inflation surpassed the expectations of analysts, who had predicted it would stay flat at 0.5%.

Unlike previous year, food prices rose in October and people stocked up on potatoes and fruit.

"The rate of inflation increased slightly as clothing prices grew, returning to their normal seasonal pattern after the disruption this year", ONS deputy national statistician for economic statistics Jonathan Athow said.

Second-hand cars and computer games also saw price rises, but these were partially offset by falls in the cost of energy and holidays.

On a monthly basis, prices rose 0.4 per cent, compared with a 0.2 per cent median forecast in the Bloomberg survey.

Inflation is the rate at which the prices for goods and services increase.

"Notably, many existing homeowners were spurred on to move by the combination of needing more space and the temporary Stamp Duty changes".

Restaurants and hotels continued to put inflation under pressure last month due to a temporary cut in Value-Added Tax.

"The gradual increases in consumer prices could be temporarily cut short next month, as England's second national lockdown in November restricts activity and demand for things like fuel", says Hannah Audino, economist at PwC.

On a monthly basis, the average price of a property in the United Kingdom has risen by 1.7%.

However, vehicle prices may stabilise and fall back in the middle of 2021 should a vaccine become widely available, according to Samuel Tombs, chief United Kingdom economist for Pantheon Macroeconomics.

Core inflation measures - often seen as a better gauge of underlying price pressures - ticked up to an average of 1.77 per cent in October, the highest reading since February, from 1.7 per cent in September.

It was particularly caused by an increase in the price of vegetables and fruit, the ONS said.

Also, the largest upward impact on annual inflation was measured in the food and non-alcoholic beverages index, while the largest downward impact was recorded in the transport index.

But if we're to avoid deflation, further fiscal measures may be needed to stimulate and fix a stricken economy once mass vaccination is underway.

NYC Cops Shut Down RONA Fight Club
Covid 19 coronavirus: Harvey Weinstein isolated over Covid fears