British inflation rose to its highest level in more than five years for September, according to official data, adding to the likelihood that the Bank of England will raise interest rates next month.
Consumer prices were 3.0 percent higher than a year ago.
Market analyst, David Cheetham said “Today’s release has all but rubber-stamped a rate hike from the central bank”
It’s been driven largely by the pound’s fall since the Brexit vote, squeezing household incomes as wages have failed to keep pace.
Although some of the decline has already been felt by consumers, some retailers are only now starting to pass on price rises, with IKEA increasing prices by 3 percent to compensate.