Inflation climbs to 0.7%

18 November 2020

The latest data released by the Office of National Statistics (ONS) highlights the fact that inflation has grown to 0.7% for the month of October 2020, which is an increase from the 0.5% reported in relation to September 2020.

This makes it the third consecutive month in which inflation has increased, since August’s inflation rate of 0.2%. The rate recorded in August 2020 was the lowest recorded for a period of five years. The Bank of England’s target currently sits at 2%, so there is a substantial way to go before that figure is reached, but the rate has climbed more than experts anticipated, who predicted that the rate of inflation would probably sit at around 0.5%

Deputy statistician at the ONS, Jonathan Athow, commented:

“The rate of inflation increased slightly as clothing prices grew, returning to their normal seasonal pattern after the disruption this year.”

Rising prices were offset to a degree by downward contributions from recreation, culture and transport groups.

 


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