Higher energy bills lead to rise in inflation

An increase in energy prices resulted in higher inflation in the UK, latest figures show.

Inflation rose by 2.3% in the 12 months to October 2024, up from 1.7% in September and well below its recent peak of 11.1% in October 2022.

Electricity prices rose by 7.7% in October 2024, having fallen by 7.5% between the same two months last year, while gas prices rose by 11.7% in October 2024.

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 prices.

“The cost of raw materials for businesses continued to fall, once again driven by lower crude oil prices,” he added.

Looking more specifically at food and non-alcoholic beverage prices, these rose by 1.9% in the year to October, up from 1.8% to September 2024. The annual rate of 1.9% is down from a recent high of 19.2% in March 2023.

Vegetables (including potatoes) was the only one of the 11 food and non-alcoholic beverage classes to provide an upward contribution to the change in the annual rate of inflation between September and October 2024. This occurred because prices rose between September and October this year, but fell between the same two months last year.

Meanwhile, downward contributions came from fish, oils and fats, and coffee, tea and cocoa.