The Office for National Statistics said annual consumer price inflation rose to 3.2 percent last month, more than a percentage point above the central bank’s 2 percent target.
Analysts had expected it to hold steady at 3.1 percent.
The figures highlight the dilemma facing the Bank of England, grappling with stubborn price pressures at a time when painful public spending cuts risk throwing the recovery off track.
On the month, consumer prices rose 0.3 percent, again slightly more than the 0.2 percent increase expected. That rise was led by higher petrol costs, a sharp jump in the price of comp uter games, and the fact that reductions in overdraft charges last October were not repeated last month.
Inflation in Britain has been surprisingly stubborn over the past year, and is running well above comparable rates in the euro zone and United States.
In his public letter to finance minister George Osborne, to be published at 1030 GMT, King is likely to reiterate his view that upward price pressures will prove temporary.
Projections published by the central bank last week showed inflation could rise above 3.5 percent at the start of next year — when a rise in VAT will kick in — but would fall back below 2 percent in early 2012.
Retail price inflation, which includes more housing costs and forms the basis of many wage deals, eased slightly to 4.5 percent from 4.6 percent in September.
UK inflation rises to 3.2%
Publication Date:
Wed, 2010-11-17 00:11
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