In­fla­tion rate saves Bank from let­ter

The Courier & Advertiser (Dundee Edition) - - BUSINESS -

Bri­tain’s surg­ing in­fla­tion un­ex­pect­edly held steady last month, as ris­ing food prices were coun­tered by a drop in fuel costs.

Fig­ures from the Of­fice for Na­tional Sta­tis­tics showed the Con­sumer Prices In­dex (CPI) mea­sure of in­fla­tion was 3% in Oc­to­ber, un­changed from a five-year high in Septem­ber.

Economists had pen­cilled in a higher rate of 3.1%, which con­ven­tion states would have forced Bank of Eng­land Gov­er­nor Mark Car­ney to write a let­ter to Chan­cel­lor Philip Ham­mond ex­plain­ing why it was as high.

The Bank, which raised in­ter­est rates to 0.5% ear­lier this month, ex­pects CPI to peak at around 3.2% in the au­tumn, ad­ding fur­ther pres­sure to UK house­holds.

Chris Wil­liamson, chief busi­ness econ­o­mist at IHS Markit, said: “The re­cent surge in price pres­sures is pri­mar­ily due to the de­pre­ci­a­tion of ster­ling since last year’s EU ref­er­en­dum, which has in­creased the cost of im­ported goods and ser­vices, but today’s num­bers will add to the sense that the worst of this im­pact has al­ready passed.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.