Brexit bumps inflation to five-year high
INFLATION surged to a five-year high in September as rising food and transport costs upped the financial pressure on households.
Figures from the Office for National Statistics showed the Consumer Price Index rose to three per cent last month, up from 2.9 per cent in August and in line with forecasts.
The last time the rate of inflation was higher was in March 2012, when it reached 3.5 per cent.
Households have been feeling the pinch as the Brexit-hit pound bumps up everyday prices and wage growth tracks behind inflation.
ONS head of inflation Mike Prestwood said: “Food prices and a range of transport costs helped push up inflation in September. These effects were partly offset by clothing prices that rose less strongly than this time last year.”
Bank of England Governor Mark Carney is now on the brink of having to write to Philip Hammond explaining why inflation is rising so rapidly.
The Government have set an inflation target of two per cent, with protocol dictating that Carney must contact the Chancellor if it exceeds three per cent or falls short of one per cent.
It came as the Retail Price Index, which is used to set next year’s business rates, was unchanged last month at 3.9 per cent.
Despite coming in shy of expectations, the rate still means businesses will face a hefty tax hike in 2018.