Mubasher: Inflation in the UK was flat in October at 3% from a month earlier, which suggested that prices increased at a time when the British pound had fallen.

October’s inflation data came below analysts’ projections of a 3.1% rise, as the prices of food and entertainment grew during the month.

This is the highest level of UK inflation since March 2012.

Inflation data for food and non-alcoholic beverages rose by 4.1%, their highest level since September 2013, official data showed.

The rise in prices coincided with the decline in the pound, after the country had voted to leave the European Union (EU) last year, and as forecasts that Brexit talks were coming to an end.

By 10:25 am GMT, GBP/USD was down 0.11% to $1.3101, while EUR/GBP grew 0.56% to GBP 0.8946.