LONDON – Inflation in Britain rose by more than anticipated in October, largely on the back of higher university fees.
The Office for National Statistics also said Tuesday that higher prices for clothing, shoes, food and non-alcoholic beverages were also factors behind the increase in the headline annual inflation rate to 2.7 percent from 2.2 percent in September.
The markets were anticipating a more modest rise to 2.4 percent.
The government's official target is to keep consumer price inflation at or near 2 percent. The October rate was the highest since May, when it was 2.8 percent.
Samuel Tombs, an economist at Capital Economics, says he believes the weakness of the U.K. economy will rein in inflationary pressures in the coming months.