Inflation hits two year high of 1% – and is set to continue rising
It has risen by 0.4 per cent since August, but has little to do with Brexit, says the Office of National Statistics
INFLATION rose to a near two-year high last month — driven by rising prices for clothes and fuel.
September’s rate of one per cent was up 0.4 per cent from August.
But the fall in the Pound since the Brexit vote had little to do with the figure being at its highest since November 2014.
The Office for National Statistics said there was “no explicit evidence” the weak Pound was increasing prices.
Its head of inflation, Mike Prestwood, said the rate is “low by historic standards”.
Inflation has moved towards the Bank of England’s target of two per cent.
Governor Mark Carney said last week he was “willing” to let inflation rise above two per cent — and analysts predict it could hit three per cent next year.
Clothes had their biggest monthly jump since 2010, rising six per cent between August and September.
Petrol prices climbed by 1.2p per litre month-on-month to 111.2p.
Inflation can push wages up.