Inflation on hold as food and clothing offset energy hikes

Figures from the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) held steady at 2.4% in October.

Economists had been expecting inflation to rise to 2.5%.

The ONS’ head of inflation Michael Hardie said: “Prices paid by consumers continued to rise at a steady rate with falls in food and clothing offset by rising utility bills and petrol, as crude prices continued to rise.

“House price growth ticked up a little as increases in Wales, Scotland and the midlands were to some extent offset by falls in central London.”

The pound eased back against the US dollar after the figures, down 0.2% to just under $1.30.

Sterling held firm at j1.15.

Food price growth cooled off following rapid inflation this time last year, continuing a trend seen in September.

Prices for oils and fats dropped by 6.3% compared to the previous month, while milk, cheese and eggs were down 1.4%.

Overall food and non-alcoholic drink prices declined by 0.2% in October.

Clothing and footwear also put downward pressure on the overall rate, dipping by 0.5%.

Footwear in particular weighed on the sector with a monthly decline of 1.3%.

But consumers’ wallets were hit by higher utilities and petrol costs.

Gas and electricity prices both jumped by 2%, while liquid fuels jumped by 7.2%.

Economists had expected utilities to drive inflation, after price increases last month from utilities firms British Gas and Scottish Power in the latest round of tariff hikes.

At the pumps, motorists were also facing higher costs last month, with petrol up by 0.4p per litre on the month to 130.7p per litre.

This was the highest level in almost four years, with prices last seen higher in July 2014 when it was at 131p.

Diesel also rose by 1.8p to 136.1p, the highest since May 2014.

Households also faced higher prices for recreation and culture, climbing 0.7% on the month.

This included a 1.7% rise in books and a 2.3% jump in games, toys and hobbies.

But transport services continued a downward trend, dropping 2.6% in October as train and ferry tickets fell by 1.4% and 8.1% respectively.

The Consumer Prices Index including owner-occupiers’ housing costs (CPIH) - the ONS’ preferred measure of inflation - was 2.2% in October, unchanged from September.

The Retail Prices Index (RPI), a separate measure of inflation, was 3.3% last month, unchanged from September.