Higher motoring costs have helped to push the UK's underlying rate of inflation higher.

The latest figures from the Office of National Statistics (ONS) showed the annual rate of inflation - excluding mortgage interest payments - reached 2.3% in October, against 2.1% the month before.

The move was slightly stronger than expected, with most analysts forecasting a figure of 2.2%, and takes inflation to its highest level since April when it also stood at 2.3%.

Despite the increase, the figure is still below the Bank of England's target rate of 2.5%, which the Bank is allowed to over or undershoot by one percentage point.

Rising trend

"The inflation numbers came in slightly on the high side of expectations though in terms of the index number the differences were small," said Geoff Dicks at RBS Financial Markets.

"Nevertheless the trend is upward and, from this higher-than-expected starting point, next month we will get to at least 2.5%, probably higher."

Last week, the Bank's interest rate-setting body - the Monetary Policy Committee (MPC) - chose to leave UK interest rates unchanged at 4%.

"It does help to justify the MPC's decision to leave rates on hold last week as RPIX is likely to go higher over next month or so," said Glenn Davies at Credit Lyonnais.

"But this is due to short-term effects and we see it going lower as we go into the spring."

Motoring upwards

Headline inflation, which includes all mortgage costs, was pushed higher by the surging housing market, climbing to 2.1% in October from 1.7% the previous month.

The ONS said motoring costs were behind some of the increase in inflation, as petrol and oil prices had remained steady compared with falls last year.

The cost of household services - which includes things such as builders, cleaners and plumbers - were also behind the rise.

The booming housing market also led to a rise in estate agents' fees.