Inflation rises back above the 2% target
THE rate of inflation has risen back above the Bank of England’s 2% target, the Office for National Statistics (ONS) has revealed.
Covering the 12 months to October 2024, the annual consumer price index rose by 2.3%, which marked a 0.5% increase from the number in September.
Similarly, the CPIH figure, which takes into account household costs including energy bills, increased to 3.2% in October rising up 0.6 percentage points from the figure in September.
The ONS has put this hike in the rate of inflation down to an increase in energy bills, with the prices on electricity and gas both rising from the previous month.
Electricity costs rose by 7.7% in October and reflects the rise of the Office of Gas and Electricity Markets (Ofgem) energy price cap. Further to this, the ONS said that gas saw an increase in price as well, rising up 11.7% in October 2024.
Ofgem estimated that this rise in energy costs would add a further £149 to the average household’s annual energy bill.
Food and non-alcoholic beverages saw a slight increase from the September figure of 0.1% and sat at 1.9% in October, with an upward contribution to this figure coming from Vegetables (including potatoes), though other food groups did fall including:
• fish
• oils & fats
• coffee, tea & cocoa
And the rate of inflation for alcohol and tobacco products saw a rise in October too, as this figure rose up to 5.2%.
This reflects also reflects a rise in Kantar’s grocery price inflation figure which increased by 2.3% during the four weeks to 3 November, which the market research firm said was slightly up from September’s figure, but still within typical levels.
Mirroring this figure, take-home sales across supermarkets also rose by 2.3% as Kantar said early Christmas shopping keeps consumers coming back to the tills.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Some people think Christmas ads hit our screens too soon, but it’s clearly important for retailers to set out their stalls early.
“648,000 shoppers have already bough a Christmas cake, while 14.4% of households picked up mince pies in October.
“With Black Friday on the horizon, the grocers will be hoping to capture a slice of the action there too.”
