O in rose sharply to higher than expected 2.3% in October, according to data from the British National Statistical Office published today (20.11.2024). This increase marks a sharp increase from 1.7% recorded in September and exceeds the prediction of 2.2% of Reuters analysts. The statistical service’s latest announcement once again brings inflation to Britain above the Bank of England’s 2% target, possibly reducing the prospects of a final cut in interest rates this year. The core of inflation, which does not include energy, food, alcohol and tobacco, was formed at 3.3% for the month, slightly increased by 3.2% in September. The rise was partly expected due to the increase in the energy price ceiling established by the regulatory authority and entered into force in October, which is expected to lead to higher inflation of energy prices in the colder winter months. Price increases in the UK’s dominant service sector increased moderately to 5.0% last month from 4.9% in September, marking the lowest rate of over two years. “Inflation should gradually slide higher from now on, with rising energy bills, budget impact and friction on world trade likely to maintain the overall rate above the Bank of England target for 2% to 2025,” said Suren Thiru, director of finance at the Institute of Accountants of England and Wales.
Britain: A sharp rise in inflation to 2.3%
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