Inflation in Britain rose last month to its highest level in five months, according to the Bank of England's key measure of price movements Retail prices minus mortgage interest payments, the UK's main gauge of inflation, rose 0.6pc in September from August and was up 2.1pc from a year ago, the Office of Nationals Statistics said. That was up from August's 1.9pc and the highest rate since April.
Economists had expected the rate to remain at 1.9pc, but the figure remains below the government's 2.5pc target rate Inflation including mortgage interest payments rose 0.7pc on the month and 1.7pc year-on-year, up from 1.4pc in August Oil prices contributed to the higher inflation rate in September, pushing prices of fuel and light up 0.9pc on the month, while clothing prices also rose, jumping 4.4pc as the summer sales came to an end and the winter lines were launched in High Street stores
The government has a 2.5pc target for inflation every month except two since March 1999. That allowed the Bank of England to lower its benchmark lending rate seven times last year to 4 percent, the lowest since 1964. The lower rates encouraged consumers to borrow and spend. //www.fxcentre.com