Inflation has risen by more than expected due to an increase in energy bills, according to official figures.

It’s the first rise in the rate of price increases, as measured by the consumer prices index (CPI), for three months.

The figure stood at 2.3% in October, according to the Office for National Statistics (ONS), above the 2.2% forecast by economists.

This is also a sizeable increase on the 1.7% recorded a month earlier.

Household gas and electricity bills rose last month as the energy price cap brought the cost of a typical annual bill up by an extra £12 a month.

Inflation wasn’t higher because there were falls in live music and theatre ticket prices and continued drops in the cost of raw materials due to cheaper oil.

Money blog: Follow live reaction to inflation news

Latest inflation data will be cause for concern for rate-setters

Gurpreet Narwan

Business and economics correspondent

@gurpreetnarwan

How worried should we be about this inflation news?

These figures are a world away from the double-digit levels of inflation we experienced in 2022, when the index peaked at 11.1%. Inflation has broadly been coming down as the Bank of England has ratcheted up interest rates.

However, Labour’s budget has created inflation jitters. The government is injecting a big fiscal stimulus into the economy in the form of higher government spending.

The rise in employers’ national insurance contributions could also lead to higher prices.

This has raised the inflation forecasts and likely slowed the pace of interest rate cuts.

Read Gurpreet Narwan’s full analysis of the inflation news.

What about interest rates?

Today’s data may affect the likelihood of the Bank of England cutting interest rates next month.

Before the inflation figure was announced, there was a 78.3% chance of no change – and a 21.7% chance that the cost of borrowing would fall by 0.25 percentage points, according to market expectations.

After the announcement that changed to 84% chance of no cut.

Also on the up was another important measure of inflation watched by the Bank – core inflation, which measures price rises but excludes food and energy costs as they’re liable to sharply fall or rise.

Core inflation rose to 3.3%, more than the 3.1% expected by economists polled by Reuters.

Services inflation also came in above forecast and higher than a month ago at 5%.

Political reaction

Darren Jones, the chief secretary to the Treasury, said the government understands people are struggling after the inflation announcement.

He said: “We know that families across Britain are still struggling with the cost of living. That is why the budget last month focused on fixing the foundation of our economy so we can deliver change.

“But we know there is more to do. That is why the government is focused on economic growth and investment so we can make every part of the country better off.”

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But shadow chancellor Mel Stride said: “It’s higher inflation and lower growth under Labour.

“What is worrying about today’s announcement is that inflation is running ahead of expectations and official forecasts state these figures are not expected to improve.

“Labour’s budget will push up inflation and mortgage rates.”

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Jack checks in from Washington, which is still buzzing from Trump’s cabinet picks and 2024 ambitions, which could include a Scottish visit next year.

Prime Minister Keir Starmer is now returning from his trip to Brazil but will miss PMQs, leaving Angela Rayner to face the new Conservative frontbench. What do we know about Alex Burghart, who is being put up by the Tories to face her?

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Instagram is releasing a feature that will let users easily reset their algorithms, as the government strengthens its regulation of online safety.

With the new reset feature, users can clear their recommended content from Explore, Reels and their feed, potentially reducing the amount of harmful content they are exposed to.

It’s all part of Meta’s push to make the app safer for young people, after announcing more private Teen accounts in September.

The feature, which will soon be rolled out globally, was announced as the government outlined its priorities for online safety.

Peter Kyle, Labour’s technology secretary, said Ofcom should ensure the concept of “safety by design” is being followed by tech companies from the outset.

That would ensure more harm is caught before it occurs.

He also pushed for more transparency from tech giants on what harms are occurring on their platforms.

“From baking safety into social media sites from the outset, to increasing platform transparency, these priorities will allow us to monitor progress, collate evidence, innovate, and act where laws are coming up short,” Mr Kyle said.

While the announcement was welcomed by child protection groups, some cautioned that the government needed to go further.

Ian Russell, chair of trustees at Molly Rose Foundation, said: “This announcement outlines a much needed course correction, vital for improved online safety, and to prevent the new regulation falling badly short of expectations.

“However, while this lays down an important marker for Ofcom to be bolder, it is also abundantly clear that we need a new Online Safety Act to strengthen current structural deficiencies and focus minds on the importance of harm reduction.

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Meanwhile, the NSPCC has urged social media platforms to be more transparent and proactive about child safety.

“They should be disrupting ‘safe havens’ for offenders by tackling the hidden abuse taking place through private messaging,” said Maria Neophytou, director of strategy and knowledge at the NSPCC.

“It is right that the government is focusing on driving innovation and new technology that can identify and disrupt abuse and prevent harm from happening in the first place.

“The regulatory framework has the potential to change the online world for children.”