UK inflation rises to 5.2%
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The UK consumer prices index has risen to 5.2 per cent in September, according to the Office for National Statistics.
The consumer prices index is up 0.7 per cent from 4.5 per cent in August. The retail prices index rose to 5.6 per cent, up from 5.2 per cent in August.
CPI annual inflation has never been higher but was also 5.2 per cent in September 2008. The ONS says the rise is largely down to an increase in gas and electricity charges, while there was also upward pressure on air transport and communication services.
RPI has also hit its highest point since June 1991, when it was 5.8 per cent.
The Bank of England’s target rate for CPI is 2 per cent.
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Readers' comments (4)
Matthew | 18 Oct 2011 9:57 am
At 5.2% that is 2.6 times higher than their target and the MPC are still totally clueless on what to do.
In spite of a so called price war in the supermarkets, price increases of 5-10 % are still the norm on many items.
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Anonymous | 18 Oct 2011 10:25 am
Even if they had a clue that's not the issue. Most of the causes of this inflation are out of their control. Central banks only really know (in a crude way) how to deal with inflation that's driven by demand and this isn't that scenario.
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Mark | 18 Oct 2011 11:35 am
Given that the MPC have not got a clue and/or that is not the issue, they set an interest rate they judge will enable the inflation target to be met. They have not met that target for a very long time now so the question is what is their role in the overall scheme of things and what purpose do they serve ?
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Bill Williams | 24 Oct 2011 1:25 pm
The primary purpose they serve is to prevent politicians from setting interest rates for political gain rather than any economic reason.
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