Inflation climbs to 4.2% as energy and fuel costs rise

Property prices are rising at a faster rate than expected, new figures show.

Inflation last month was 4.2%, down from 3.1% a month earlier, the Office for National Statistics said.

The prices of the goods are

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The prices of the goods areCredit: Alamy

Inflation is a measure of the cost of living. It examines how much the price of goods has changed over time.

The average price increase is usually based on the cost of things today compared to a year ago and is known as the rate of inflation.

The latest figures show inflation is at its highest level in a decade, driven by rising energy and fuel costs.

The government sets an inflation target of 2% to maintain sustained economic growth.

The Bank of England has warned that inflation could reach 5% and that it should raise interest rates accordingly.

Grant Fitzner, chief economist at the ONS, said: “Inflation rose sharply in October to reach its highest rate in almost a decade.

“This is explained by the increase in household energy bills due to higher price caps, an increase in the cost of used cars and fuel as well as higher prices in restaurants and hotels.

“The costs of goods produced by factories and the price of raw materials have also increased significantly and are now at their highest level for at least 10 years.”

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