Inflation rises to 11-month high, rate hike now likely in November

Summarised from 2 outlets · Updated 21 Oct, 12:44 · Archive

UK inflation rose to 3.5% in September, the highest rate in 11 months, making a Bank of England interest rate rise in November more likely.

UK inflation rose to 3.5% in September, up from 3.1% in August, marking the highest rate in 11 months. The Office for National Statistics figures exceeded economists' forecasts and pushed inflation further from the Bank of England's 2% target.

Motor fuel prices were a major driver of the increase, rising 30% year-on-year following the US-Israeli conflict, which has squeezed global oil and gas supplies. Living costs are expected to rise further as households face higher energy bills this winter.

Economists anticipate the Bank of England will raise interest rates in November to manage inflation and prevent secondary effects such as higher wage demands. Martin Sartorius, lead economist at the Confederation of British Industry, said an interest rate hike was 'firmly on the table' at the Bank's next meeting.

How it is being reported

• Interest rate hike ‘firmly on table’ after inflation rises to 11-month highExperts have said the latest official inflation data has reinforced expectations of a rate hike in November.Independent Business · 21 Oct, 12:29
• Interest rate hike ‘firmly on table’ after inflation rises to 11-month highExperts have said the latest official inflation data has reinforced expectations of a rate hike in November.Evening Standard · 21 Oct, 12:29

In this story: Bank of England · Office for National Statistics · Confederation of British Industry · United Kingdom

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