2 hours Ago By HuffPost UK
has risen by more than economists had expected, according to official figures. The Office for National Statistics has concluded that the Consumer Prices Index (CPI) leapt from 1.7% in September to 2.
3% in October. It means the may be less inclined to cut interest rates next month, as its target inflation rate is 2%. The Bank already cut interest rates twice this year, taking it to 4.
75%. there was a 78.3% chance of no change in this month’s inflation rate before the ONS’s announcement.
But October’s rise was driven by the rise in energy bills, following a 9.5% rise in the energy price cap. The news bucks the overall downward trend recorded since the shocking rate of 11% in 2022 – a 40-year-high – when the cost of living crisis was at its peak.
But it comes as another blow to chancellor Rachel Reeves, who is already grappling with the impact of her October Budget. This week, she has already been challenged by farmers protesting against her decision to reduce inheritance tax relief for those with particularly large estates. Top stores including Tesco, Sainsbury’s, Amazon and Greggs also wrote to Reeves this week complaining about the “sheer costs” businesses and shoppers now face because she chose to hike employers’ National Insurance.
It is estimated the move, which will see the NI rate increase and bring down the threshold at which it must be paid, will raise an extra £25.7 billion for the Treasury. Reeves claims her Budget was necessary because of the £22bn Labour says the Tories left behind in the public finances.
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