Inflation has risen to 1.3% according to the latest figures from the Office of National Statistics.

The Consumer Prices Index grew by 1.3% in the year to October 2014, up from 1.2% in September.
Last month inflation had fallen to 1.2%, down from 1.5%, making it the lowest since September 2009.

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Sylvia Waycot, editor at Moneyfacts.co.uk, said: "Inflation may have risen after three consecutive months of falls, but it still makes little difference to savers suffering from poor returns.

"There is an abundance of ISAs that beat inflation, over half all cash ISAs in fact. However, it is the lack of decent returns that's the big problem for savers, not choice.

"Today there are a total of 828 savings accounts on the market, but only 267 (135 fixed bonds, 130 ISAs and 2 notice accounts) pay enough interest to negate the effects of tax and inflation.

"This time last year there were only 45 accounts to choose from, but despite the lack of choice, these savings deals paid better interest, so savers are in a worse situation today.

"With the New Year fast approaching, savers are daring to hope because the much anticipated Pensioner Bonds launch in January, offering up to 4% interest. However, those looking to supplement their income will be disappointed as these won't pay monthly interest. The average fixed return on standard monthly interest accounts is currently an inflation beating 1.83%.

"What savers really want for Christmas is someone to shake up the market, so that providers start offering decent returns on their savings."

Ben Brettell, senior economist at Hargreaves Lansdown, said: "Despite this month's small rise, the outlook for inflation remains weak. The Bank of England said last week that CPI inflation was likely to fall below 1%in the coming months, meaning Mark Carney would once again have to write a letter to George Osborne explaining why inflation has deviated from the 2% target by more than one percentage point.

"Bank of England Chief Economist Andy Haldane said in a speech yesterday that he is watching UK inflation expectations "like a dove". This is a clear indication that he expects weak inflation to allow the Bank to maintain its ultra-low interest rate policy for some time.

"While the UK economy seems in good health, storm clouds are gathering on the horizon. The exceptionally weak economic performance of the euro zone – our largest trading partner – remains a severe threat, while data released this week showed that Shinzo Abe's radical reforms have failed to prevent the Japanese economy slipping back into recession.

"Given these threats, and the absence of inflationary pressure, it is difficult to see why the Bank of England would consider raising interest rates at present. I expect them to remain on hold until late 2015 and perhaps beyond."

CPIH (not a National Statistic) grew by 1.3% in the year to October 2014, up from 1.2% in September.
The ONS report stated: "Smaller falls in transport costs than a year ago – notably for motor fuels and air fares, and price rises for computer games were the main contributors to the rise in the rate of inflation.
"Food and motor fuel prices, which have historically been upward contributors to the 12-month CPI rate, are currently reducing it by 0.3 percentage points."

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