UK inflation rate rises beyond target

By Gokhan Kurtaran

LONDON

The inflation rate in the United Kingdom rose to 3.1 percent last month, the Office for National Statistics (ONS) said Tuesday as inflation reached its highest level since March 2012.

The Consumer Prices Index annual rate was 3.0 percent in October.

Computer games and airfares contributed significantly to the increase, the ONS said, while average weekly wages are growing at just 2.2 percent. Food prices have also risen significantly.

Last month, the Bank of England hiked its key interest rate from 0.25 to 0.5 percent.

Bank Governor Mark Carney previously said inflation was expected to peak in October or November.

Carney is now obliged to write to Chancellor Philip Hammond to explain why the rate has gone beyond the official 2 percent target.

By Gokhan Kurtaran

LONDON

The inflation rate in the United Kingdom rose to 3.1 percent last month, the Office for National Statistics (ONS) said Tuesday as inflation reached its highest level since March 2012.

The Consumer Prices Index annual rate was 3.0 percent in October.

Computer games and airfares contributed significantly to the increase, the ONS said, while average weekly wages are growing at just 2.2 percent. Food prices have also risen significantly.

Last month, the Bank of England hiked its key interest rate from 0.25 to 0.5 percent.

Bank Governor Mark Carney previously said inflation was expected to peak in October or November.

Carney is now obliged to write to Chancellor Philip Hammond to explain why the rate has gone beyond the official 2 percent target.