Inflation jumps to 2.7%

The UK's main inflation rate has jumped sharply to 2.7% in October, having fallen to a 34-month low of 2.2% in September.

Official data from the Office for National Statistics (ONS) showed the consumer price index (CPI) is up 0.5 percentage points month on month, but still significantly down from the three year high of 5.2% in September last year. Meanwhile, the retail prices index (RPI) rate has risen by 0.6 percentage points to 3.2%, up from 2.6% last month. The Bank of England's quantitative easing (QE) programme, now at £375bn,  and its move to slash the base rate to a record low of 0.5% has helped stimulate inflation and stave off a deflationary environment. However, savers and pensioners have su...