Update: FTSE and pound rise as inflation jumps to 22-month high

Surpasses expectations

Sterling rose 0.5% in morning trading, after it was revealed UK inflation climbed to 1% in September, a 22-month high, surpassing economists' expectations and forecasts from the Bank of England's August Inflation Report.

The Office for National Statistics (ONS) reported the Consumer Price Index (CPI) jumped to 1% in September, the highest level since November 2014 and higher than estimates of a 0.9% rise. Upward pressures on the CPI came from rising prices for clothing, overnight hotel stays and motor fuels, said the ONS, although these were partially offset by a fall in air fares and food prices. Managers: How we are guarding against inflation risks Though the weakening in the pound since the Brexit vote has been blamed for increases in retail prices, the ONS added there is no "explicit evidence" ...