UK inflation has reached its highest level of 3% in September, the latest figures from the Office of National Statistics reveals.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.8% in September, up from 2.7% in August and the highest levels since March 2012.
The ONS suggests the rising prices in food and recreational goods as part of the reason for this peak inflation level.
Emmanuel Lumineau, chief executive at BrickVest, said: “The UK’s relative economic strength post-Brexit has now waned as consumers begin to feel the impact of rising inflation.
"Higher interest rates should be coming for the first time in more than a decade. For the commercial real estate industry, higher interest rates and rising inflation make borrowing and construction more expensive for owners, which can have a constraining effect on the market but can also lead to an increase in property prices.
“We continue to see the highest level of volatility from the office sector as many international firms currently headquartered in the UK put decisions on hold over their long-term office space requirements.
"If the UK no longer gives businesses access to the European market, they may need to spread their staff across multiple locations to more efficiently access both the UK and European market."
