Figures published by the Office for National Statistics (ONS) revealed that the consumer prices index (CPI) increased to 2.7% last month, up from the 2.2% seen in September.
Economists were expecting CPI to rise to around 2.3%. The Bank of England’s official target for inflation is 2%.
The ONS said university tuition fees were the largest contributor to October’s rise. Food and non-alcoholic beverages was the second biggest contributor, especially potatoes, fruit and confectionery.
Howard Archer, chief UK and European economist at IHS Global Insight, said: “Disappointing and worrying news for consumers and the Bank of England as consumer price inflation jumped far more than expected to a five-month high.”
Capital Economics UK economist Samuel Tombs added: “The rise is not as bad as it looks, given that it largely reflects the influence of temporary factors.
“First, the planned utility price hikes have started to take effect. Second, the increase in global food prices earlier this year has begun to feed through to the shops. And third, a particularly sharp increase in university tuition fees added 0.3% to the headline rate.”
Tombs also noted that the surprise rise in inflation could offer another explanation for why the Bank of England’s Monetary Policy Committee held off on adding to quantitative easing last month, as it would have seen the headline figures.
