The rise follows the drop from 2.2% to 1.7% between August and September.

Meanwhile CPIH also saw an increase from 2.6% in September to 3.2% for the 12 months leading to October 2024.

According to the data from the ONS, the largest upward contribution to the monthly change in both CPIH and CPI annual rates came from housing and household services, mainly because of electricity and gas prices.

The largest offsetting downward contribution came from recreation and culture.

Industry professionals have given their take on the latest inflation hike:

Nathan Emerson, CEO at Propertymark:

“It is disappointing to see that inflation has increased considering the overall trend throughout the year.

“However, there are many national and global factors that impact the UK economy, hopefully inflation will better stabilise, and the UK economy should continue to adapt, no matter what happens in response to national and international events.

“With housing playing a vital role in the growth of the economy, over time it would be positive to see interest rates drop to levels not seen since 2019, in order that more people can afford to enter the housing market for the first time or make their next all-important home move.”

Martyn Smith, managing director at Black & White Bridging:

“The rise in inflation to 3.2% up 2.3% from September reflects the ongoing pressures of rising energy costs and housing expenses, which remain key drivers.

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“For the mortgage and bridging markets, this creates additional complexity, as higher living costs put further strain on affordability assessments and borrower confidence.

"While core inflation has only edged up slightly, the persistence of elevated service costs is a clear sign that inflationary pressures are far from resolved.

“This environment makes it increasingly difficult for lenders and borrowers to plan effectively, particularly with the BoE showing no urgency to cut the base rate.

"Looking forward, the bridging market will continue to play a vital role in providing flexible financing solutions, but sustained inflation could lead to a prolonged period of cautious lending and limited activity in the wider property market.”

Paul Noble, CEO at Chetwood Bank:

“This latest inflation data is untimely, especially as we head into the festive season, but it’s not entirely unexpected with higher energy costs and price rises in the services sector.

“The key question is whether this is just a temporary blip following recent positive inflation news or the start of a new upward trend.

“However, it’s worth bearing in mind that inflation is still markedly lower than it was at the same point 12 months ago and the bank base rate is still above inflation.

“What’s more, there are strong opportunities in the savings market for those looking to make their money work harder over the festive period and into 2025.

“Nevertheless, today's figures are also a timely reminder to the banking sector that banks must do everything they can to support consumers and help ease their worries over festive spending as we move towards one of the most expensive and financially testing times of the year.”