UK inflation jumps to 2.7 per cent

The consumer prices measure of inflation jumped to 2.7 per cent in October, up from 2.2 per cent in September, with the hike in university fees behind the rise.

Aside from university tuition fees, price rises in food and transport also contributed to the increase, according to official figures from the Office for National Statistics.

The retail prices index, which includes mortgage payments, rose to 3.2 per cent in October, up from 2.6 per cent in September.

Chris Williamson, chief economist at Markit, said today that September’s figure of 2.2 per cent will be “the lowest we see for some time”.

“The Bank of England's updated growth and inflation forecasts, due tomorrow, are likely to show that inflation will rise further in coming months, due largely to higher energy and food prices.”

Williamson added: “The Bank's current estimate that inflation will fall below its two per cent goal by the end of 2013 is looking somewhat optimistic as a result.”