The UK’s key inflation rate hit its highest for more than five years in September, driven up by increases in transport and food prices.
The Consumer Prices Index (CPI) climbed to 3%, a level it last reached in April 2012, and up from 2.9% in August.
The pick-up in inflation raises the likelihood of an increase in interest rates next month. The figures are significant because state pension payments from April 2018 will rise in line with September’s CPI.
Under the “triple lock” guarantee, the basic state pension rises by a rate equal to September’s CPI rate, earnings growth or 2.5%, whichever is the greatest. (BBC)
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