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British inflation hits over five-year high in September

British inflationThe British key inflation rate climbed to 3 percent, hitting its highest for more than five years in September, the Office for National Statistics (ONS) said.

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READ MORE UK house price inflation eases further in June

The Consumer Prices Index (CPI) measure of inflation rose from 2.9 percent in August driven up by higher food prices and increases in transport.

ONS head of inflation Mike Prestwood said: "Food prices and a range of transport costs helped to push up inflation in September. These effects were partly offset by clothing prices that rose less strongly than this time last year."

The fall in the pound since last June Brexit referendum has been one factor behind the rise in the inflation rate, which led the cost of imported goods has risen.

Mark Carney, governor of the Bank of England (BOE), said Tuesday inflation hasn't peaked yet after hitting 3 percent.

He said: "We had signalled prior to the referendum that in the event of a vote to leave... we expected sterling to fall sharply - it did. That passes through to prices."

The rise in inflation calls the likelihood that the BOE could raise interest rates next month.

The BOE has been in countdown to a rate increase since saying in September that such a move might be needed in the "coming months."

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