The rate of inflation has risen to 1% in September, the highest figure since November 2014 and the biggest jump since June 2014. The ONS figures put much of the rise down to an increase in clothing costs, hotel rates and fuel costs.
Ben Brettell from the financial company Hargreaves Lansdown said:
“Inflation looks certain to rise further over the coming months, and could easily exceed the 2% target in 2017. This will undoubtedly be tough on those with low incomes, and it’s also not good news for savers who are losing money in real terms”.
Earlier in the week Mark Carney, the Governor of the Bank of England, warned that the bank may need to let inflation exceed its target in a bid to protect economic growth.