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World

UK inflation sees biggest jump in two years

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Opening sequence

World

UK inflation sees biggest jump in two years

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COMING UP:UK inflation sees biggest jump in two years

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Transcript

00:00:00
>> British consumer prices recording their sharpest jump in two years. And that in September, before this month's post Brexit plunge in sterling. Clothing and fuel, the main drivers behind the increase to a headline 1% rate, the highest since November 2014. Reuters UK economics correspondent Andy Bruce says it set the tone for the coming year.
00:00:24
>> The latest inflation data is very much a sign of things to come. You could argue it's almost more worrying that inflation has already risen without the Office for National Statistics reporting much evidence of weak sterling pushing up prices. So when that does happen, you could expect even more inflation.
00:00:45
>> Last week so-called Marmitegate, Tesco, in a standoff with supplier Unilever over its demands for price hikes, hinting that supermarkets are willing to shield consumers if they can. But it could herald a drop in consumer spending, as some prices do rise.>> The spat between Tesco and Unilever was noticeable, because it was so public.
00:01:10
I wouldn't be surprised if more retailers and suppliers behind the scenes are having these kind of rows.>> The Bank of England meanwhile, trying to shield economy from Brexit related weakness. But the pounds near 20% drop since June's referendum on its future with the EU now making further rate cuts unlikely.
00:01:29
A prospect which gave sterling a brief recovery as this new data was announced.