UK posts spurt in inflation

Britain’s annual inflation rate accelerated in September to the highest level in more than five years, lifted by rising commodity, food and transport prices, official data showed yesterday.

Inflation has soared this year as the Brexit-hit pound ramped up import costs, placing household budgets under intense strain as wage growth has failed to keep pace with rising consumer prices.

The Consumer Prices Index’s 12-month rate climbed to 3 percent last month from 2.9 percent in August, the Office for National Statistics said in a statement.

The September reading — which was in line with market hopes — raises the likelihood of Bank of England lifting interest rates at their next meeting in November.

The last time the rate hit 3 percent was in April 2012, while it was last higher in March of the same year when it surged to 3.5 percent.

“The latest headline figures were boosted by a pick-up in fuel costs as pump prices respond to the recent increase in oil prices,” said ING economist James Smith.