Britain’s inflation rate rose to 2.3% in October, reversing a downward trend earlier in the year and putting pressure on the Bank of England to postpone further rate cuts until at least next year. Official figures released by the Office for National Statistics (ONS) on Wednesday showed that a sharp rise in energy bills contributed significantly to the rise in the consumer price index (CPI), pushing inflation above the central bank’s 2% target. It was shown that

The figure was up from 1.7% in September and slightly ahead of economists’ expectations of 2.2%. Rising energy prices, particularly gas and electricity prices, were the main driver of the increase, although lower oil prices helped offset some of the pressure on transportation and raw material costs for manufacturing. The 0.6% increase in September-October was the largest month-on-month increase since October 2022.

The quarterly energy price cap for households rose by 10% in October to £1,717, and some forecasts suggest it will rise further to £1,736 in January 2025. Retailers have warned that policies introduced in Labour’s recent budget could push prices up further and lead to a fall in demand. Consumer trust.

Economists have expressed concern about rising inflation, which they blame in part on rising energy prices and global trade tensions. Suren Tirou, head of economics at the Institute of Chartered Accountants in England and Wales, called it an “unfortunate relapse in inflation”, with energy costs, budgetary impacts and global uncertainty pushing inflation to exceed the World Bank’s target. He pointed out that it was highly possible. foreseeable future.

The rise in inflation comes as the Bank of England has already cut interest rates twice this year, with interest rates currently at 4.75%.

Further complicating the Bank’s policy decisions, the core inflation rate, which excludes variables such as food and fuel, rose from 3.2% to 3.3%, and services inflation rose from 4.9% to 5%.

Sterling reacted positively to the rising inflation statistics, surging against most currencies.