UK inflation reaches highest level in a decade at 4.2%

Overshot market expectation of 3.9%

UK annual CPI inflation reached 4.2% in October, its highest level since November 2011, and up from 3.1% in September.

While CPI overshot market expectations of 3.9%, inflation outstripped the consensus across core CPI (which excludes energy, food, alcohol and tobacco) and CPIH (including housing costs), according to Daniel Casali, chief investment strategist at Tilney Smith & Williamson. Andrew Bailey 'very uneasy' about rising UK inflation Core CPI inflation reached 3.4%, up from 2.9% in September, with CPIH inflation rising to 3.8% from 2.9%. The main contributor of inflation came from electricity, gas and other fuel price increases, "which are particularly sharp given the government's increase ...