UK inflation rises to record 5.2%

CPI inflation surged to 5.2% in September, equalling a record set in 2008, the Office for National Statistics (ONS) said today.

An increase in energy costs was behind a significant proportion of the increase in the rate, which was up from 4.5% in August. The CPI index has never been higher but was also 5.2% in September 2008. The Bank of England's target rate for CPI is 2%. The Retail Prices Index measure - which includes mortgage interest payments - rose to 5.6% from 5.2% in August - the highest it has been for 20 years. This is the first month when benefits will increase in line with CPI instead of RPI. Rates set by the September inflation figures include allowances and indexation for income tax, natio...