One of the key measures of UK inflation has risen to 1.5 percent in October – marking the first rise since February this year.
The inflation statistic published by the Office for National Statistics shows that the Consumer Price Index (CPI) climbed up to 1.5 percent in October. In September the CPI ranged around 1.1 percent.
Inflation is measured by the CPI and RPI, the Retail Prices Index.
Although inflation means that prices go up - the steady increase of the price of goods and services – an inflation rate between 2 and 3 percent is acceptable in Europe, says Finance Lecturer Hafid Benamraoui of Westminster University.
1.5 percent is, thus, not a high rate. The Office for National Statistics even states:
“The Bank of England’s Monetary Policy Committee is required to achieve a (CPI) target of 2 per cent.”
The next UK inflation statistic is to be published in December.
