Inflation poised to hit three-year high

Inflation is expected to hit a three-year high today, with the consumer prices index (CPI) for September likely to weigh in around 5 per cent.

The rate, which stood at 4.5 per cent in August, will land the UK government with a bumper bill for increased state benefits, as the figure will be used to determine next April’s rise. Economists say September is likely to be a high point, with inflation forecast to drop off significantly next year.