inflation leapt last month on the back of a 20% hike in education costs and soaring food prices.
The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) inflation rate rose to 2.7% in October, up from 2.2% the month before, while the Retail Prices Index (RPI) rate – which includes housing costs – rose to 3.2% from 2.6%.
The ONS said education costs rose 19.1% last month after tuition fees went up from £3,375 to £9,000 a year in September, while food prices, especially vegetables, went through the roof after record rainfall hit crop yields.
The ONS reported that confectionery prices also rose, with a number of products reduced in size, saying it treated this as a price rise in the inflation measures, as consumers were getting less for their money.
The Treasury described the figures as ‘disappointing’, while Labour said the increase was ‘worrying’.
Commenting, TUC General Secretary Brendan Barber warned: ‘People have been getting poorer for nearly three years now and their incomes are being squeezed even tighter.
‘It could take many years to undo the damage caused by our living standards crunch.’
Liam Burns, NUS President, said: ‘The government completely failed to take into account the wider impact of their rushed rise in tuition fees and its impact on the public purse or future generations.
‘They told us that trebled tuition fees were a necessity to save money but it will actually cost ordinary taxpayers billions more.
‘Students and young people from across the country will be descending on London on November 21st to demonstrate against the impact of the government’s austerity agenda on students.’
Unison General Secretary Dave Prentis said: ‘The rising cost of energy and fuel will mean a cold Christmas for millions, the rise in inflation will come as no surprise to families struggling to pay costly energy and food bills.
‘Christmas should be a time of celebration but many people are dreading the pressure it will put on their finances.
‘There is a very real danger that today’s rise in inflation will tip family budgets over the edge and into the arms of unscrupulous pay-day loan companies.
‘It is time to end the three year pay freeze hitting millions of public service workers and to help health workers such as nurses, paramedics and therapists who have had no increase for two.’
PCS general secretary Mark Serwotka said: ‘While senior company executives pocket double-digit increases, wages are being cut for public and private sector workers as they struggle to cope with the soaring costs of food and fuel.’
