CPI inflation hits 5.2% 'peak'

The UK Statistics Authority says electricity prices jumped to 30.3% year on year, up from 18% in August, while gas inflation rose to 49.9%, up from 27.7% the previous month. These price hikes drove the consumer prices index (CPI) annual inflation to 5.2% in September, more than 3% above the Government’s 2% target. But analysts argue 5.2% may represent a peak for CPI and expect the figure to shrink rapidly over the next 12 months as a result of slowing demand in a stagnant economy. Price rises for clothing, footwear, recreation and culture activities also had an upward effect on inflat...