Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK inflation rises to 2.3% in October on higher energy costs

by November 20, 2024
November 20, 2024
UK inflation rises to 2.3% in October on higher energy costs

UK inflation climbed to a six-month high in October, surpassing the Bank of England’s 2% target, driven primarily by increased household energy bills.

The Office for National Statistics (ONS) reported that the annual Consumer Price Index (CPI) rose to 2.3% last month, up from 1.7% in September—the highest rate since April. This figure exceeded both economists’ forecasts of 2.2% and the Bank of England’s projection of 2.1%.

The rise was widely anticipated following Ofgem’s decision to increase the energy price cap in October. The ONS noted that housing costs, reflecting higher gas and electricity prices, were the largest contributors to the inflation uptick. There were also smaller increases in transport, furniture costs, and restaurant prices. Conversely, the recreation and leisure sector saw declining inflation, making its smallest contribution to the price basket in two years.

Grant Fitzner, chief economist at the ONS, said: “Inflation rose this month as the increase in the energy price cap meant higher costs for gas and electricity compared with a fall at the same time last year. These were partially offset by falls in recreation and culture, including live music and theatre ticket prices.

“The cost of raw materials for businesses continued to fall, once again driven by lower crude oil prices.”

Key sub-components of inflation also saw increases. The services sector inflation, closely watched by the Bank of England, strengthened from 4.9% to 5%, aligning with the Bank’s forecasts. Core inflation, which excludes volatile food and energy prices, edged up from 3.2% to 3.3%, defying expectations of a drop to 3.1%.

Andrew Bailey, Governor of the Bank of England, warned that inflation in the services sector remains “incompatible” with the Bank’s 2% target over the medium term. Despite cutting interest rates for the second time this year to 4.75%, policymakers are divided on the future path of inflation. Four of the nine members of the Monetary Policy Committee expressed differing views during a parliamentary hearing on Tuesday.

Official figures due tomorrow are expected to show an uptick in the Consumer Price Index to 2.1% in October, driven by rising household energy bills. Traders currently do not anticipate another interest rate cut this year, with expectations of a maximum of four cuts in 2025, potentially lowering the base rate to 3.75%.

The UK’s 2.3% inflation rate in October compares with an average of 2% in the eurozone and 2.6% in the United States.

Read more:
UK inflation rises to 2.3% in October on higher energy costs

0
FacebookTwitterGoogle +Pinterest
previous post
Italian village offering 1 Euro homes to Americans ‘worn out’ from election results
next post
Vintage teddy bear sales soar amid Paddington Bear revival

You may also like

Why High Pay Day matters

January 26, 2023

How to Keep Your Identity Hidden While Creating...

May 9, 2023

Top 7 Stunning Destinations Like Santorini You Should...

November 19, 2024

London gateway looks to surpass felixstowe as UK’s...

July 15, 2024

Family-owned sports seating firm secures £100k green loan...

January 18, 2023

Ad spending on mobile social media to grow...

September 8, 2022

Prospect of insolvency for UK businesses set to...

June 27, 2023

UK exports to the EU boomed 4.4% in...

September 14, 2023

Joules sounds the alarm over possible loan default...

November 8, 2022

Truss plans to loosen immigration rules to tackle...

September 26, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Key blue state Republican says Senate’s local tax write-off offer is a ‘good deal’

      June 28, 2025
    • Key GOP senator defects on crucial vote, imperiling Trump’s ‘big, beautiful bill’ in narrow majority

      June 28, 2025
    • Terror in Gaza: Hamas offers bounties to kill US and local aid workers, group says

      June 28, 2025
    • SCOOP: Blue state Republican could oppose Trump tax bill over Medicaid changes

      June 28, 2025
    • Marco Rubio holds first meeting with families of hostages held by Hamas

      June 28, 2025
    • Trump’s NATO Turnaround: From threatening to pull US out to ‘daddy’ of the alliance

      June 28, 2025

    Categories

    • Business (8,329)
    • Investing (2,081)
    • Politics (15,849)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved