Inflation has soared this year as a Brexit-hit pound ramped up import costs, which led the Bank of England to raise its key interest rate for the first time in a decade at a meeting earlier this month.
Analysts polled by Reuters had expected October's CPI inflation rate would edge up to 3.46 percent from September's 3.28 percent.
As per the ministry's data, retail inflation on a YoY basis edged higher due to a rise in the prices of food items like vegetables, milk-based products, cereals, meat and fish.
Other notable categories such as cereals became dearer by 3.68 per cent and meat and fish recorded a rise of 3.12 per cent.More news: Ecobee Announces Integration with the Google Assistant
At three percent overall, "inflation looks like it has peaked and... the Bank of England will tread carefully", ING bank economist James Smith said following Tuesday's data, adding that another rate rise next year remained a possibility. "Similarly, the policymakers should check and address prices of products, including paddy, that are hovering at higher levels and are also of national importance", said Rawat.
INFLATION remained at a five-year high of three per cent last month, putting continued strain on the budgets of United Kingdom households.
Food price inflation (combined) stood at 1.90 per cent in October against 1.25 per cent in September and 3.32 per cent in October 2016. "However, cut in excise duty announced by the government tempered the price increase in fuel". Secondly, the GST Council has drastically cut the GST rates... that is likely to have a subduing effect on retail inflation in the coming months.
Kate Smith, head of pensions at Aegon, warned people are facing a "triple whammy" of squeezes in their purse: high inflation, little sign of wage growth and rising interest rates.