The following is an unedited transcript of the news release from the UK National Statistics.


In the year to October, the consumer prices index rose by 2.1%, up from 1.8% in September. In the year to October, the all items retail prices index rose by 4.2%, up from 3.9% in September. Over the same period, the all items RPI excluding mortgage interest payments index (RPIX) rose by 3.1%, up from 2.8% in September.

CPI

The CPI and RPI use different classification systems. The largest upward contribution to the change in the CPI annual rate came from changes in transport costs, in particular fuels and lubricants.

Petrol pump prices rose by 2.7 pence per litre in October, in large part reflecting the increase in fuel duty that came into effect on the first of the month; last year, by contrast, petrol prices fell by 5.2 pence per litre. There was also a large upward contribution from air travel, with fares to European destinations bucking the usual seasonal pattern by rising this October, whereas they fell a year ago. A small upward contribution came from sea travel, with fares falling by less than last year.

A further large upward effect came from food and non-alcoholic beverages. This was mainly due to meat, where there were strong recoveries in the price of bacon, and fruit, in particular from increases in the price of strawberries and bananas. Smaller upward contributions came from bread and cereals, mainly due to changes in the price of biscuits and cakes, and from milk, cheese and eggs.

A small upward effect came from furniture and household goods, in particular major appliances and small electric goods, with prices falling by less than a year ago, when there were special offers at some major suppliers. A further upward contribution came from miscellaneous goods and services, mainly due to appliances and products for personal care, where prices rose this year but were unchanged a year ago. A partially offsetting downward effect came from financial services, where average charges fell this year but rose a year ago.

The largest downward contribution to the change in the CPI annual rate came from housing and household services, with gas and electricity bills both falling slightly this year as a result of the continued phasing in of tariff reductions. Over the same period last year, average gas and electricity bills rose. A partially offsetting upward effect came from heating oil, which rose in price this year but fell a year ago, reflecting movements in crude oil prices.

Small downward effects came from:

Communication, where prices overall fell this year; last year, by contrast, there were increases in some landline call charges;
Clothing and footwear, mainly due to women’s outerwear where special offers were more common this year, compared with price rises a year ago;
Alcohol and tobacco, with prices falling this year but rising a year ago,
particularly for bottles of whisky and bottled lager; and Restaurants and hotels, mainly due to changes in hotel accommodation costs and the price of beer on-sales, particularly bitter.

RPI

The largest upward contribution to the change in the RPI annual rate
came from motoring expenditure. As in the CPI, petrol pump prices
increased in October, compared with a sharp drop in prices a year
ago. There was also a small upward effect from vehicle insurance.

Further large upward contributions came from:

Food, where prices rose by more than a year ago, particularly for
fresh fruit, biscuits and cakes, and meat products; and Household goods, in particular electrical appliances, with prices
falling by less than a year ago, when there were special offers at
some major suppliers.

Small upward contributions came from:

Fares and other travel costs, mainly due to changes in the cost of
air travel, with fares to European destinations rising this October
but falling a year ago; and Leisure goods, mainly due to audio-visual equipment, where prices of personal computers rose this year but fell a year ago.

The largest downward contribution to the change in the RPI annual
rate came from fuel and light, with gas and electricity bills both falling
slightly this year as a result of the continued phasing in of tariff
reductions. Over the same period last year, average gas and
electricity bills rose. A partially offsetting small upward effect came
from heating oil.

Further large downward effects came from:

Household services, with the cost of fees and subscriptions rising
by less than a year ago, particularly for university tuition fees.
There was also a small downward contribution from average
telephone charges which fell this year but increased a year ago;
and Alcoholic drinks, where prices fell this year but rose a year ago,
particularly for off-sales of bottled lager and whisky, and beer onsales,
particularly bitter.