Finance
UK inflation rises by more than expected to 2.3% in October
Global Banking & Finance Review®
Company
LONDON (Reuters) -British inflation jumped by more than expected to go back above the Bank of England’s 2% target last month and measures of underlying price growth gathered speed too, showing why the BoE is moving cautiously on
LONDON (Reuters) -British inflation jumped by more than expected to go back above the Bank of England’s 2% target last month and measures of underlying price growth gathered speed too, showing why the BoE is moving cautiously on interest rate cuts.
Consumer prices rose by an annual 2.3% in October after showing a 1.7% increase in September which was the first time inflation fell below the BoE’s target in almost three and a half years.
The BoE’s most recent forecast and a Reuters poll of economists had both pointed to a reading of 2.2% in October.
The increase was the biggest month-to-month rise in the annual CPI rate since October 2022.
Services inflation – which the BoE views as a key measure of domestically generated price pressure – rose to 5.0% in October from 4.9% in September, the Office for National Statistics said.
The BoE had expected it to rise to 5.0% in October.
Core inflation, which excludes energy, food, alcohol and tobacco, picked up to 3.3% from 3.2% in September.
(Reporting by William Schomberg; editing by David Milliken and Sarah Young)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage change.
The Bank of England's target inflation rate is 2%. This target is set to maintain price stability and support economic growth.
Core inflation measures the long-term trend in prices by excluding volatile items such as food and energy. It provides a clearer view of underlying inflation trends.
Explore more articles in the Finance category
