Inflation rise surprise

INFLATION has jumped to a near two-year high as the rising cost of clothes, restaurants and hotels pushed up the cost of living. The Consumer Price Index inflation hit 1.0% in September – the same level as November 2014 – rising from 0.6% in August.

Yet the Office for National Statistics said there was “no explicit evidence” that sterling’s slump following the Brexit vote had pushed up goods prices.

The value of the pound has fallen nearly 20% against the US dollar since Britain voted to leave the European Union.

The Retail Prices Index – a separate measure of inflation, which includes housing costs – rose to 2% in September, up from 1.8% in August.