Inflation edged up in October, but is still expected to fall over the coming months.
The headline measure of prices – the consumer prices index (CPI) – rose to 1.3 per cent for the year to October, up from 1.2 per cent in September, according to figures released by the Office for National Statistics yesterday.
The CPI is calculated using a basket of goods that a household would usually buy. CPI inflation was buoyed by higher computer game prices, with new titles released in the run up to Christmas replacing cheaper ones.
New games such as Assassin’s Creed Unity retail for around £50. Fuel prices also slowed their decline, lifting the figure.
“It looks increasingly likely that inflation will dip below one per cent in the early months of 2015,” said Martin Beck, economic adviser to the EY Item Club. He said low oil prices implied a further fall in petrol prices.