Britain's annual inflation rate edged higher in October, in line with expectations, owing to higher petrol prices and gas and electricity charges, official data showed on Tuesday. The Office for National Statistics said the consumer price index gained 1.2 percent in October on a year ago, up from 1.1 percent in September, as rising oil prices pushed up household utility prices at the fastest rate since records began in 1997. The climb in the CPI toward the Bank of England's 2.0 percent target was exactly in line with consensus forecasts. The figures are likely to bolster the view that policymakers may not have much more work to do in raising interest rates. "The news should be treated with a degree of indifference at the Bank of England," said Gavin Redknap, economist at Standard Chartered. "Rising oil prices do appear to be having some marginal effect on inflation but with CPI still significantly below the Bank's 2.0 percent target, the BoE has little to worry about yet." Bond markets did not react to the data. The pound fell to an 11-month low against the euro, but it was driven mostly by earlier data showing house prices tumbling at their fastest rate in 12 years. --more 1319 Local Time 1019 GMT
