The pound has jumped in forex trading on news UK inflation rose to 2.7 per cent in October.
According to the Office for National Statistics, the rate – which is measured by the Consumer Prices Index (CPI) – jumped from 2.2 per cent in September due to the rising cost of university tuition fees.
It now costs students 19.1 per cent more to attend university after the cap on charges was hiked by the government to £9,000 from £3,375.
In addition, the Retail Prices Index measure of inflation jumped to 3.2 per cent from 2.6 per cent in September.
Food price inflation increased after the summer's miserable weather affected crop harvests, which raised the price of vegetables.
September's CPI inflation was the lowest for almost three years and therefore October's data was expected to be higher.
At 10:45 GMT today (November 13th), the pound was higher by 0.1 per cent versus the dollar to £1 buying $1.589, while against the euro sterling was up by 0.3 per cent to £1 buying €1.254.
Find out about the pound and forex trading at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.