MoneySavingExpert.com homepage
Cutting your costs, fighting your corner
Founder, Martin Lewis · Editor-in-Chief, Marcus Herbert
Search bar closed.
MSE News

Inflation rises for first time in eight months

stock_market_rise
Press Association
Press Association
Editor
17 November 2009

Petrol prices pushed up inflation last month for the first time since February, official figures showed today.

The Consumer Prices Index (CPI) rose to 1.5% in October from 1.1% in September, the Office for National Statistics (ONS) says (see the Cheap Petrol & Diesel guide).

While average petrol prices slipped 0.8p a litre over the month, it was a much smaller fall than the 7.1p slide seen a year earlier amid collapsing oil prices, adding to inflationary pressure.

Although CPI is still below the Bank of England's 2% target, today's figure is slightly above the 1.4% expected by the City.

However, the Bank expects inflation to rise still further above the target in the months ahead, particularly when the temporary cut in VAT is reversed in January.

Other reasons behind the jump in the CPI over the month included a record rise in the price of second-hand cars due to a shortage of supply, and increasing air fares compared with slashed prices a year earlier.

DVDs and computer games also registered price hikes as well as telephone bills, where increases in landline costs were higher than a year earlier.

The price pressures offset downward influences on the index, particularly from lower bank overdraft charges and mortgage arrangement fees (see the Cheap Mortgage Finding guide).

The Retail Prices Index, which includes house prices, rose from minus 1.4% to minus 0.8% on the month, the biggest month-on-month rise in more than 19 years.

The same factors influencing the CPI affected the RPI - with the added impact that house prices are now rising compared with falls a year earlier.

Further reading/Key links

Best rates: Top Savings Mortgage rate-busting: Cheap Mortgage Finding

MSE Forum
Forum image
MSE Email icon 5 November 2024

For all the latest deals, guides and loopholes simply sign up today - it’s spam free!

Martin's Savings Masterclass
Boost your interest NOW
Life insurance for beginners
Save £1,000s
Paying off student loan?
Some can get £100s back
'Free' National Trust family pass
Normally about £30
Are solar panels worth it?
See our updated guide
TWO pairs of specs £14
Including delivery
Budget need-to-knows
Stamp Duty, carers & pensions
Tools and calculators

Clever ways to calculate your finances

Find your odds of getting top cards
Find your odds for getting a cheap loan
Compare broadband, phone & TV deals
Compares thousands of mortgages
Eight calcs to help you work out the cost
We ensure you’re on the cheapest tariff