Inflation has risen by more than economists had expected, according to official figures.
The Office for National Statistics has concluded that the Consumer Prices Index (CPI) leapt from 1.7% in September to 2.3% in October.
It means the Bank of England may be less inclined to cut interest rates next month, as its target inflation rate is 2%.
The Bank already cut interest rates twice this year, taking it to 4.75%.
According to Sky News, there was a 78.3% chance of no change in this month’s inflation rate before the ONS’s announcement.
But October’s rise was driven by the rise in energy bills, following a 9.5% rise in the energy price cap.
The news bucks the overall downward trend recorded since the shocking rate of 11% in 2022 – a 40-year-high – when the cost of living crisis was at its peak.
But it comes as another blow to chancellor Rachel Reeves, who is already grappling with the impact of her October Budget.
This week, she has already been challenged by farmers protesting against her decision to reduce inheritance tax relief for those with particularly large estates.
Top stores including Tesco, Sainsbury’s, Amazon and Greggs also wrote to Reeves this week complaining about the “sheer costs” businesses and shoppers now face because she chose to hike employers’ National Insurance.
It is estimated the move, which will see the NI rate increase and bring down the threshold at which it must be paid, will raise an extra £25.7 billion for the Treasury.
Reeves claims her Budget was necessary because of the £22bn Labour says the Tories left behind in the public finances.
Science secretary Peter Kyle responded to the increase in inflation by telling Times Radio: “We certainly want to get inflation down. We know the impact that inflation has on people’s everyday spending. This does concern us. And we want to make sure that we do everything we can to ensure that it carries on falling.
“The fact that we’re now delivering a stable economy, we have stable politics, these are the kinds of things that will deliver lower inflation into the longer term.
“And we’ll certainly be doing everything we can to make sure that’s a reality that people can experience in their pocket going forward.”
Conservative MP and shadow chancellor, Mel Stride, said: “Having brought inflation back down to target, we know how important it is for all of us that the government does the same.
“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.
“It’s higher inflation and lower growth under Labour.”