Mubasher: The UK’s inflation rose to 3% in September from 2.9% in August, marking its highest level in over five years, data showed Tuesday.
In April 2012, consumer price index (CPI), the measure for inflation, stood at 3%.
Analysts forecast that the rise in inflation will support an increase in the Bank of England’s (BOE) interest rates in November.
The decline in the value of the British pound following last year’s Brexit vote has contributed to bolstering inflation, according to the BBC.
"Food prices and a range of transport costs helped to push up inflation in September. These effects were partly offset by clothing prices that rose less strongly than this time last year," said Mike Prestwood, the head of inflation at the UK’s Office for National Statistics (ONS).
Meanwhile, Laith Khalaf, senior analyst at Hargreaves Lansdown, told the BBC that "The tick upwards in inflation will increase expectations of a rate rise from the Bank of England later on this year, stoked by a flurry of hawkish rhetoric coming from Threadneedle Street."
By 9:11 am GMT, the GBP/USD was up 0.08% to $1.3261.
