Cost of living squeeze continues as UK inflation sticks at five-year high – business live

UK consumer price index stuck at 3.0% in October — it hasn’t been higher since early 2012

Earlier:

The jump in inflation over recent months is clearly a blow to UK consumers, even though October’s reading isn’t as bad as feared.

Thomas Wells, manager of the Smith & Williamson Global Inflation-Linked Bond Fund, says households are still suffering the aftermath of the 2016 Brexit vote:

“UK inflation remains elevated, in line with our expectations. We continue to view the post-referendum weakness in sterling as the key driver of the recent spike in inflation, putting pressure on household budgets.

“This is unquestionably bad for consumers, especially when combined with the recent increase in interest rates pushing up mortgage repayments. We therefore expect conditions to remain tough, putting downward pressure on demand, and hence inflation, over the next six months.

The cost of food and non-alcoholic beverages rocketed by 4.1% over the last 12 months — helping to keep overall inflation high.

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