uk inflation petrol prices
Falling petrol prices amid supermarket discounting helped pull UK CPI inflation down in October (Reuters)

UK inflation fell back sharply in October, though it still continues to far outpace wage growth as the country's income squeeze maintains its grip on households.

Consumer Price Index (CPI) inflation was 2.2% during the month said the Office for National Statistics (ONS), down from September's 2.7%. Regular pay growth stuck at around the 1% mark, leaving many with higher bills but less wages with which to pay them.

The biggest downward pressures on the headline figure came from slower tuition fees growth - a correction after the cap was lifted to £9,000 in 2012 and inflation spiked as a result - and the falling cost of motor fuels.

Education prices rose by 8.2% between September and October 2013, compared with a rise of 19.1% in 2012.

"The downward contribution came principally from UK and EU student tuition fees, where the impact on the CPI of the rise in the cap for tuition fees introduced last year for new UK and EU students in England was smaller this year than in 2012," said the ONS.

"The smaller impact was due to the fact that many students were already paying the higher rate of fees. In addition there were more modest price increases for part-time and postgraduate fees compared to last year."

Transport prices dropped by 1.5% between September and October 2013, against a fall of 0.1% between in 2012.

"Within the transport sector, the main downward contribution came from prices for motor fuels with reports of price cuts at many of the major supermarket chains on the back of decreases in wholesale prices," said the ONS.

"There were also notable downward contributions from air fares and prices for second hand cars."