Inflation rises to 2.3% in October after jump in energy bills
20 November 2024, 07:10 | Updated: 20 November 2024, 07:57
Inflation increased to 2.3% in October after a jump in energy bills.
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The increase from 1.7% in the previous month was driven by a rise in household energy bills, according to official figures.
Bills for a typical household went up by around £149 in October after Ofgem increased the energy price cap by 10%.
The subsequent jump in inflation marks the sharpest month-on-month increase in two years.
It could also impact the likelihood of interest rates being dropped again next month, with rates now back above the Bank of England's target of 2%.
ONS chief economist Grant Fitzner said: "Inflation rose this month as the increase in the energy price cap meant higher costs for gas and electricity compared with a fall at the same time last year.
"These were partially offset by falls in recreation and culture, including live music and theatre ticket price.
"The cost of raw materials for businesses continued to fall, once again driven by lower crude oil price."
Read more: Household energy bills rise by £149 a year today as Ofgem increases price cap by 10%
Treasury Chief Secretary Darren Jones acknowledged there was "more to do" to ease cost-of-living pressure as inflation increased to 2.3% in October from 1.7% in September.
Mr Jones said: "We know that families across Britain are still struggling with the cost of living.
"That is why the Budget last month focused on fixing the foundation of our economy so we can deliver change.
"That includes boosting the national minimum wage, freezing fuel duty and protecting working people's payslips from higher taxes.
"But we know there is more to do. That is why the Government is focused on economic growth and investment so we can make every part of the country better off."
Shadow chancellor Mel Stride warned the impact of the Budget would push up inflation.
"Having brought inflation back down to target, we know how important it is for all of us that the Government does the same," he said.
"What is worrying about today's announcement is that inflation is running ahead of expectations and official forecasts state these figures are not expected to improve.
"Labour's Budget will push up inflation and mortgage rates.
"It's higher inflation and lower growth under Labour."
