The latest UK inflation figures for October show that consumer price inflation has held at its highest level since April 2012, with the CPI rate holding at 3.0%.

As with the figures released in September, the rate of inflation continues to be driven by increases in the price of food. Prices for food and non-alcoholic beverages increased by 0.4%. The increase in recreation and culture costs also continued from September, with a 0.5% rise building on the growth in prices observed last month. As highlighted by the ONS, the UK has consistently observed higher price inflation across both goods and services for the last six months.

Meanwhile, producer price inflation rose by 2.8%, mainly due to a slowdown in the rate of petroleum price growth. As with Consumer Prices, this is slightly lower than the markets were anticipating.

Liz Cameron, Chief Executive, Scottish Chambers of Commerce said:

“Although the hold in the CPI rate is a more positive outcome than the rise that many analysts were expecting today, the continued increase in the prices of food and recreational products emphasise the persistent pressure on the budgets of UK households. Furthermore, the CPIH figures highlight growing owner occupier costs, such as electricity and council tax.

“Rising mortgage payments, bolstered by the decision to raise interest rates, alongside the sustained weakness of sterling will also act to slow consumer demand and impact the bottom lines of businesses.

“These figures come at a crucial time for the Chancellor, and it is essential the Autumn Budget presents a range of measures to jumpstart the UK economy, including encouraging businesses to invest in their employees and boost productivity, look to new markets for trading opportunities and investment in essential infrastructure.”