UK inflation: Higher energy bills push rate to 2.3% in October

UK inflation jumped last month in part due to rising energy prices, official figures show.

The inflation rate, which measures price changes over time, hit 2.3% in the year to October, an increase from 1.7% in September.

Annual gas and electricity bills for a typical household went up by about £149 last month, but prices are rising much more slowly than in recent years.

However, the rate, which is closely monitored to determine interest rates, is now back above the Bank of England’s 2% target.

Interest rates were cut for the second time this year to 4.75% two weeks ago, but further cuts are not expected until 2025.

Grant Fitzner, chief economist for the Office for National Statistics (ONS), said while higher energy costs had contributed, this increase was offset by falls in 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.

However, with temperatures dropping to freezing levels and snow hitting parts of the UK, rising energy bills will once again become the focus of many households.

Although prices are still lower than last winter, the jump in electricity and gas costs comes as support handed out in recent years for bills has been scaled back.

The government has also announced that it will start means-testing winter fuel payments, halting them for 10 million pensioners in England and Wales.

People using an typical amount of gas and electricity are currently paying £1,717 under the energy price cap, which is set by the regulator Ofgem.

The cap determines the price paid for each unit of energy used in 27 million homes across Britain. Different rules apply in Northern Ireland.

Darren Jones, chief secretary to the Treasury, said the government knew “families across Britain are still struggling with the cost of living”.

“We know there is more to do,” he added.