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Tuition fees push inflation back up to 2.7%

13 November 2012

After falling to 2.2 per cent in September, inflation — as measured by the Consumer Prices Index — rose to 2.7 per cent in October. On the Retail Prices Index, inflation rose from 2.6 per cent to 3.2 per cent.

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The main cause of the rise is the government’s changes to university tuition fees, which put the maximum annual fee up to £9,000. Today’s figures are the first to include the effects of the policy — with the education index 19.7 per cent higher than last year.

But food prices were up too — by 0.5 per cent on last month and 3.3 per cent on last year. The good news — unusually — comes from energy bills. Gas prices in October were unchanged from September, and 1 per cent lower than in October last year. Electricity prices fell by 0.4 per cent from September to October, making a total drop of 2.3 per cent since October 2011. But the ONS cautions that ‘the widely reported price increases for many utility bills were not introduced in time to impact on the October index’ — suggesting next month’s figures will be worse.

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  • Jupiter

    Why on earth are tuition fees included in the inflation fugures? Only a tiny % of people pay them, they hardly have a big effect on the economy.

  • Daniel Maris

    2.7% when millions of public sector and private sector workers are on a third year of pay freeze? And how much have CEO’s earnings advanced? 27% in one year!!! Not 2.7% – 27%.

    That’s why many people who were prepared to give this government a go, are treating it with contempt now.

    • Dimoto

      Public sector pay is STILL rising faster than private sector, so don’t feel too sorry for yourself !
      (and public sector numbers are rising again).

  • Open_Palm

    Guess Cameron was right. The good news are indeed keeping on coming!

  • dalai guevara

    Remind me of which month it is that pension increases are calculated?

  • 2trueblue

    Are tuition fees now part of the everyday shopping basket?

    • TomTom

      So people on Benefits get an increase based on Student Tuition Fees……well I never !

      • telemachus

        Top up fees are and remain is an ideological assault on the idea of education as a publicly provided right.

        You hear the revanchists claim that there is

        “no such thing as a free lunch”

        “ why should cleaners subsidise students”

        “should the dustman continue to subsidise thedoctor?”

        Instead we are moving to real two-tier universities and the rich can afford tp pay the extra fees and go to the classy, elitist universities, rather like the US.’

        This vision is fostered by the Russell Group, who have most to
        gain from ‘differential’ fees.

        Clegg should have got a grip

    • Dimoto

      And some students will start paying in 3-4 years, and some will never pay.

      • 2trueblue

        And the figures are about things included in todays expenses, so what is their relevance today?

  • Rhoda Klapp

    The september increase sets pensions for April. It is in the interests of the govt to shift increases out of september, it saves them a lot of money. Not to say they cheat of course, it is all perfectly above board.

    • dorothy wilson

      But last year it was extremely high. Was that cheating too?

  • HooksLaw

    If university tuition fee going up for a small section of society (who only pay them off as and when they can afford it) can put up inflation by 0.5% then there is something wrong with the statistics. Or the analysis.

  • TomTom

    Good that electricity prices fell – I am now able to enjoy the savings and have decided to share my windfall with EDF from 7 December. This really is as Pangloss said,

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