According to the office for national statistics, petrol, diesel, financial services, toys, games and hobbies are the main causes of the October increase in Consumer Price Index (CPI)
Analysts were expecting the CPI rate to remain unchanged in October at 3.1 per cent.
Food Inflation has slowed and meat prices have not changed due to a drop in the price of pork. Vegetables have actually fallen by 1 per cent; this is a result of a large price drop in cauliflowers.
The Bank of England has seen the inflation rate remaining above the 2 per cent target for the last year.
The new government has announced the biggest budget cuts since World War Two. The Bank of England is expecting inflation to be down over the next couple of years, as a result of the slowdown in spending.
Inflation speculations have hit the FTSE 100 index; these include the inflation worries in Asia and the upcoming Irish bailout fears.