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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Burnham to stick with fiscal rules as power set to flow out of Whitehall

Burnham to stick with fiscal rules as power set to flow out of Whitehall

First speech since PM bid

clock 29 June 2026 • 2 min read
BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

Geopolitics in the driving seat

Michael Nelson
clock 25 June 2026 • 2 min read
Advisers highlight uncertain political and fiscal future after Starmer resignation

Advisers highlight uncertain political and fiscal future after Starmer resignation

Prime minister’s exit places chancellor Rachel Reeves’ position ‘inevitably’ under scrutiny

Isabel Baxter
clock 22 June 2026 • 5 min read