UK inflation rate climbs to 2.6%

It represents the first rise in inflation in four months. Analysts had anticipated a marginal fall in the CPI rate, which was as high as 5.2% in September last year before starting to fall. The Retail Prices Index climbed to 3.2%, from 2.8% in June. The Bank of England has previously forecast that inflation would fall to around 2.1% in the final quarter of 2012, but then might rise slightly before averaging below the 2% target from late 2013 onwards. More to follow...