Investing.com - Consumer price inflation in the U.K. rose unexpectedly in October, one month after slowing to a five-year low, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to a seasonally adjusted 1.3% last month from 1.2% in September. Analysts had expected U.K. CPI to hold steady at 1.2% in October.
Month-over-month, consumer price inflation inched up 0.1% in October, in line with expectations and after holding flat in September.
Prices for transport costs, notably motor fuels and air fares were the main contributors to the rise. Rising prices for some recreational goods in the run up to Christmas also contributed to the rise.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 1.5% last month, unchanged from September. Analysts had expected core prices to rise 1.6% in October.
The retail price index increased 2.3% in October, meeting expectations and unchanged from in September.
The data also showed that the house prices index climbed 12.1% in September, meeting forecast and up from 11.7% in August.
GBP/USD was trading at 1.5668 from around 1.5652 ahead of the release of the data, while EUR/GBP was at 0.7981 from 0.7988 earlier.
Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 tacked on 0.3%, the DJ Euro Stoxx 50 picked up 0.65%, France's CAC 40 advanced 0.45%, while Germany's DAX rose 0.75%.