Food prices push up inflation to five-year high

Rising food prices, along with escalating transport costs pushed up the annual rate of inflation to 3% September, latest figures have shown.

Data from the Office for National Statistics shows the Consumer Prices Index 12-month rate rose 0.1% last month.

It was last higher in March 2012 and the rise may now heap added pressure on the Bank of England to consider a rise in interest rates.

The ONS said the CPI including owner occupiers’ housing costs (CPIH) 12-month rate was 2.8% last month, up from 2.7% in August 2017.

The main contributors to the increase in the rate are said to be rising prices for food and recreational goods, along with transport costs, which fell by less than they did a year ago.

The upward effects were partially offset by downward contributions from a range of goods and services, in particular clothing prices, which rose by less than they did a year ago.

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