Annual inflation in Britain increased last month as housing, motoring and education costs rose, National Statistics (NS) said this morning The government's preferred measure of inflation, retail prices excluding mortgage interest payments (RPI-X) rose 0.1pc in October from September and was up 2.3pc from a year earlier, slightly above expectations. In September, the annual rate was at 2.1pc. The overall RPI measure was also above analysts' expectations, rising 0.2pc on the month and 2.1p on the year. Economist had forecast a 1.9pc year-on-year increase
"The largest upward influence came from housing costs. Mortgage interest payments showed a rise overall, as house prices continued to increase," the statistics office said. Last October, mortgage payments fell when the Bank of England interest rate reduction in September was passed on to borrowers. Another large upward influence came from motoring expenditure, where petrol and oil prices were little changed as against falls last October. The average cost of university tuition fees also rose by more than last year, NS added //www.fxcentre.com