Rise in energy price cap fuels inflation surge

The rate of inflation has risen sharply – to 2.3% for the 12 months to October, up from 1.7% in September.

The cost of raw materials fell 2.3% in the year to October, down from a revised decrease of 1.9% in the year to September.

Meanwhile, factory gate prices fell 0.8% in the year to October, down from a revised decrease of 0.6% in the year to September.

Grant Fitzner, chief economist at the Office for National Statistics, said: “Inflation rose this month as the increase in the energy price cap meant higher costs for gas and electricity compared with a fall at the same time last year.

“These were partially offset by falls in recreation and culture, including live music and theatre ticket prices.

“The cost of raw materials for business continued to fall, once again driven by lower crude oil prices.”

The news will come as a blow for those hoping for another interest rate cut on December 19.