The underlying rate of inflation in Britain rose by more than expected last month to 2.1 per cent from 1.9 per cent the month before, official data showed today.
The Office for National Statistics said the annual rate for RPIX, which excludes volatile home loan payments, was the highest since April.
It was also slightly above market forecasts but remains comfortably below the Bank of England's 2.5 per cent government-set target.
Financial markets reacted swiftly with gilts and interest rate futures losing ground on the perception that another interest rate cut from the country's central bank was less likely.
The headline rate of inflation, RPI, also rose, to 1.7 per cent from 1.4 per cent in August. The new level is the highest for a year.
The figures showed the continuing divergence between the goods sector, where prices fell 0.9 per cent on the year, and for services where inflation rose to a 9.5 year high of 4.8 per cent.