Stabilising Fuel Prices Leads To Rise In UK Inflation Rate

October Inflation Rate Record for 2009

Recent figures released by the Office for National Statistics (ONS) saw inflation rise to 1.5 per cent, up from 1.1 per cent in September – the first rise since February this year.

Transport Influence on Inflation

Figures show that the increase in inflation is due to a very modest fall in the cost of fuel compared to the same period last year. Fuel prices fell by just 0.7 per cent between September and October, compared with the 6.1 per cent fall at the same time last year.

The increase in the price of second hand cars, rising at their fastest ever rate, and the 1.5 per cent increase in air fares have also contributed to the raise.

House Prices Have Increased RPI

The ONS also found the Retail Prices Index (RPI) annual inflation fell by 0.8 per cent, compared with a fall of 1.4 per cent in September. This sees the biggest monthly rise since 1990 and is partly due to the slight increase in house prices this year compared to falling prices in 2008.

Economists further predict that inflation rates may continue to rise by the beginning of 2010 as the temporary reduction in VAT is returned to the usual 17.5 per cent in January.

Payplan

If you’re struggling to pay your bills and are behind with debts due to increased living costs, then contact Payplan for debt advice online or telephone 0800 280 2816.

Written by on November 20th, 2009

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