UK inflation hit 5.2% in September as increases in the cost of living put further pressures on family finances.
Higher energy bills were blamed as the main cause behind the increase, which is way above the government’s target CPI of 2% and represented an increase from 4.7% on the previous month.
The announcement not only spells gloom for hard-pressed families in the current economic climate, but also spells bad news for the Government.
The RPI (retail price index) hit 5% a month earlier, leaving the Chancellor with an increasing bill for UK state pensions and other benefits, which increase annually by 2.5% or the official RPI measurement – whichever is higher.
Experts do however expect this figure to represent a peak in inflation, with fears of a recession very much in the minds of many amid the economic downturn.
The annual rate of inflation for energy and other household bills reached 15% following recent wholesale increases in gas and electricity- the highest since 1989 - the Office for National Statistics said.
More expensive clothing, footwear, toys and games also added to the cost of living.
Food inflation slowed for the first time since March as the price of milk held steady, but the cost of meat continued to climb.
The figure is also brought down somewhat by commodities such as electrical goods, which tend to drop in value over time as well as fuel prices, which are now averaging around 107p per litre, compared with more than 118p back in July and August.
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