Member Article

Inflation rises by 2.7%

The consumer price index rose by 0.5% in October to 2.7%, which experts are putting down to rises in university tuition fees to £9,000.

Food and drinks industries significantly contributed to increases in annual inflation, according to the Office for National Statistics, particularly in potatoes, jams and confectionary, as a result of low farming yields.

Prices in education rose by 19.1% between September and October, while clothing and footwear went up 1.2%, while prices for recreation and cultural purchases rose by 0.4%.

There were slight decreases in some sectors, with a minor dip of 0.1% in transport, and a fall of 0.6% in household goods and furniture.

ONS said: “The increase was due predominantly to a significant rise in undergraduate tuition fees, where the maximum annual tuition fees for new UK and EU students in England rose to £9,000.”

The survey highlighted pressures from food and beverages which affected inflation. ONS added: “The main upward pressures came from potatoes… fruit, and confectionery. In the case of the last of these, a number of confectionery products have reduced in size”

The Treasury said the figures released on Tuesday were “disappointing”, while experts have suggested that inflation increases were higher than expected.

This was posted in Bdaily's Members' News section by Miranda Dobson .