UK inflation rises to 3.2 per cent in October

The increase in the Consumer Prices Index (CPI) - up from 3.1% in September  has forced Bank of England Governor Mervyn King to write another letter to the Chancellor explaining why inflation is so far above the 2% target, making four in all this year. More letters must surely be on their way as all the signs point to a further CPI rise to 3.5% in coming months on the back of higher household bills and the VAT increase to 20% in January.

Good news for meat eaters and vegans as these prices are generally lower but the large increase in fuel prices has been the main driver of this inflationary increase, with beer wine and tobacco all more expensive.

However, the Bank of England boss is still comfortable that the 2%  target is attainable, telling the chancellor "The Monetary Policy Committee's central view remains that spare capacity within companies and in the labour market will continue to put downward pressure on inflation" So all will be well soon  but not quite at the moment