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

Google’s Proposal for AI Systems and Publisher Opt-Out:...

August 9, 2023

Britain’s drivers demand ‘three factors’ from new Budget...

October 25, 2023

Scrap 5p fuel duty cut as drivers miss...

August 29, 2024

Greg Wasz: Building Connections Through Sales, Creativity, and...

December 5, 2024

The Rise Of The Bitcoin Market In 2022

October 20, 2022

Shoplifting reaches record high as thieves operate without...

July 25, 2024

The Benefits of Accounts Payable Automation for Small...

October 4, 2022

UK economy grew 0.5% in October

December 12, 2022

Barclays Leads Complaints List for Small Business Account...

April 14, 2024

Gold prices could surge to $2,600 an ounce...

August 20, 2024

    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

    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025
    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,564)
    • Stocks (3,136)
    • 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