2021.11.1706:32:00UTC+00UK Inflation Accelerates More Than Expected

UK inflation accelerated more than expected in October, data from the Office for National Statistics revealed on Wednesday.

Consumer price inflation advanced to 4.2 percent from 3.1 percent in September. The rate was forecast to climb to 3.9 percent.

The upward pressure was largely driven by the surge in the cost of housing and transport.

On a monthly basis, consumer prices were up 1.1 percent versus September's 0.3 percent rise and economists' forecast of 0.8 percent.

Core inflation that excludes energy, food, alcoholic beverages and tobacco, rose to 3.4 percent in October from 2.9 percent in September. The expected rate was 3.1 percent.

Another report from the ONS showed that output price inflation increased to 8 percent from 7 percent in September. This was also above economists' forecast of 7.3 percent.

Similarly, input prices advanced at a pace of 13.0 percent annually, following the 11.9 percent increase a month ago.

Month-on-month, output prices gained 1.1 percent compared to a 0.7 percent rise in September. Economists had forecast prices to increase 0.8 percent.

At the same time, input prices climbed 1.4 percent on month after a 0.8 percent rise in the previous month. The expected rate was 1.1 percent.