UK inflation reaches highest level in a decade at 4.2%

Overshot market expectation of 3.9%

Elliot Gulliver-Needham
clock • 2 min read

UK annual CPI inflation reached 4.2% in October, its highest level since November 2011, and up from 3.1% in September.

While CPI overshot market expectations of 3.9%, inflation outstripped the consensus across core CPI (which excludes energy, food, alcohol and tobacco) and CPIH (including housing costs), according to Daniel Casali, chief investment strategist at Tilney Smith & Williamson. Core CPI inflation reached 3.4%, up from 2.9% in September, with CPIH inflation rising to 3.8% from 2.9%. The main contributor of inflation came from electricity, gas and other fuel price increases, "which are particularly sharp given the government's increase in the energy price cap in October", according to Richard...

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