UK consumer prices rose sharply in October, climbing 0.6% on a monthly basis—the biggest increase since March—after no change in September, according to the Office of National Statistics (ONS).
- The annual inflation rate rose to 2.3%, up from 1.7% in September and marking its highest level since April.
Key drivers: The biggest contributor to the rise was housing and household services, which increased 1.3% month-on-month and are now 5.5% higher year-over-year. This surge was primarily driven by rising electricity and gas prices.
- Offsetting factors: Recreation and culture prices fell slightly by 0.1% from September but remain 3.1% higher year-over-year.
Goods & Services: Services also saw significant price increases, rising 0.5% in October, which pushed annual services inflation to 5.6%. Goods prices saw a strong 0.8% monthly rise, but they remain 0.3% lower compared to the same period last year, providing some relief.
Bottom Line: Despite progress in bringing overall price levels under control, the persistent inflationary pressures present ongoing challenges for central banks as they balance efforts to stabilize economies with the need to rein in price growth.
