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UK inflation rises to 1%, highest in 2 years
UK inflation rises to 1%, highest in 2 years

The United Kingdom inflation rate rose by one percent reaching a new high in two years the Office for National Statistics (ONS) said on Tuesday.

According to the ONS, a rise in the price of clothing, services and fuel brought the UK’s consumer price index (CPI) up to one per cent, its highest level since November 2014, but remained low in relation to historic levels, Efe news reported.

“CPI inflation has risen to its highest for nearly two years, though it remains low by historic standards,” said Mike Prestwood, head of inflation at the ONS.

ALSO READ: India’s September Retail Inflation Eases

The rise surpassed analysts’ predictions that inflation rates in September would stand at 0.9 per cent, up from 0.6 per cent in the previous month.

The ONS said in a statement that there was no indication that the rise in inflation was caused by the slump in the value of the British pound sterling, which has taken a severe blow since the UK’s June 23 vote to leave the European Union (EU).

The British currency fell some 20 per cent against the US dollar in the wake of the historic referendum result.

ALSO READ: India’s Annual Wholesale Inflation Rises To 3.74% In August From 3.55% In July

Global markets have been reacting nervously to indications from the UK Parliament that the country could opt for the path of a “hard” Brexit.

This would see the government trade in its access to the EU single market for full autonomy on its immigration policy.

As it stands, the UK’s access to the common market works in combination with the EU principle for freedom of movement of workers within the bloc.

Opposition to immigration was a key driving factor behind the campaign to leave the EU on the run up to the referendum.