UK consumer prices expended at the fastest annual pace in nearly two years during the previous month. According to the Office for National Statistic, the annual rate of CPI inflation equals 1%, up from 0.6%in August and slightly higher than economists had been expecting. It is worth to point out, that this is the biggest monthly increase in the cost of household goods and services since November 2014. The following jump in inflation will cost poorer households around 100 pounds each, as their benefits will not advance in line with CPI. Meanwhile, the main upward pressure on consumer price index came from an acceleration of clothing and footwear price tags - namely women's clothes. The clothing prices went up 6% between August and September, compared a 3.3% rise over the same period last year. Moreover, the Office for National Statistics highlighted there were no 'explicit' signs that the weakness of the sterling contributed to the rose in CPI.
In the meantime, the Retail Prices Index measure of inflation, which includes housing costs, has also expanded to 2 % in September from 1.8% in August.
© Dukascopy Bank SA