Inflation surprises with 'temporary' fall to 0.9% in October

Economists expected third consecutive monthly rise

UK inflation surprised on the downside with a fall to 0.9% in October, with many economists expecting the Consumer Price Index to jump to a two-year high.

October's fall to 0.9% is down from 1% in September, which was a 22-month high and followed two months of increases. The Office for National Statistics said lower clothing prices and university tuition fees drove down the overall figure, despite uplifts from higher petrol prices. Inflation could jump to 4% by late 2017, thinktank warns However, the ONS said the depreciation in sterling is yet to feed through to the High Street but said the pressure on companies to raise prices is building. The cost of goods leaving factory gates rose by 0.6% from September, taking the annual rat...