UK consumer prices accelerated for the second month in a row, well ahead of the Bank of England's target, driven by disruptions in the global supply chain that pushed up transport costs.

Consumer prices (CPI) rose 3.1 per cent in September from a year earlier, compared with 3.2 per cent in September, the Office for National Statistics said on Wednesday. The Bank of England expects inflation to rise above 4 per cent by the end of the year, more than double its inflation target.

High inflation

The data is the last inflation data to be released before the central bank's policy meeting next month, when financial markets expect officials to raise interest rates for the first time since the outbreak. Central Bank Governor Pele has said policy makers must take action to contain the price spiral.

"the pressure from the reopening economy has led to more severe pressure on the supply chain," said YaelSelfin, chief economist at KPMG UK. "We expect inflation to rise further from October."

Transport costs led the rise in the overall consumer price index in September. Gasoline prices soared 19 per cent to their highest level since 2013-before the fuel crisis reduced supply. The price of used cars rose 2.9% in September alone and nearly 22% since April.

These factors, offset by a decline in the contribution of hotels and restaurants to inflation, have eased price pressures compared with a year ago. In September 2020, restaurants raised prices after the government's "go out to help" program ended.