Rising food prices helped to drive UK inflation to a five-year high of 3.0% in September.
That means that UK firms face a 3.9% rise in their business rates next year, under the current system. It could also drive up costs for motorists.
RPI at 3.9% also suggests a fuel duty hike of nearly 3p per litre in April 2018 unless the Chancellor acts
— steve hawkes (@steve_hawkes) October 17, 2017
Food and housing costs drove inflation up
The consumer prices index jumped by 3.0% in September, up from August’s 2.9%. That’s the highest reading since early 2012.
This means that British workers are still suffering a pay squeeze, as average wages only rose by 2.1% per year in the three months to July.
But it’s better news for pensioners, who can look forward to a 3% increase in the basic state pension next April. Under the triple-lock system, pensions rise in line with earnings growth, September’s CPI reading, or by 2.5%, whichever number is biggest.