UK Inflation significantly higher

With recent energy price hikes not factored in yet, the rise in the inflation rate released by the ONS for September, from 2.2% to 2.7%, took market watchers by surprise.

A small increase was expected but considerably lower than the half pct rise. The main reason behind it being the increase in the fees that Universities can charge that were responsible for 0.3% of the  increase. Food costs were also higher for the period.

With as yet unsubstantiated stories circulating about energy price manipulation, the recent energy price rises, up to 9%, will be somewhat difficult to take, from the government's point of view as they are trying to keep the inflation rate at the target level of 2%, and from the poor consumer's point of view who have to pay for it.

Interesting to see that energy company SSE have just released half year profits up by a massive 38%, their prices having risen by 9% in August

What a great business to be in?