The cost of living surged in October in the UK due to rising energy prices
The British Consumer Price Index (CPI) rose by 4.2% in the 12 months to October, up from 3.1% reported in September. The markets were looking for a 3.9% increase. Figures revealed that the cost of living in the UK surged to a 10-year high, as the reading came in more than double the target set by the central bank.
The Bank of England expects inflation to rise to around 5% in the spring of 2022 before falling to a 2% target by late 2023, influenced by the moderate impact of higher oil and gas prices and demand for goods. Also, the Bank of England has been keeping an eye on important data as inflation is still high while economic growth loses momentum, and labor conditions tighten.
At the same time, the Eurozone inflation hit a 13-year high in October, at 4.1%, as the member countries are battling surging energy costs. According to data from Reuters, this marks the highest level since July 2008 and ahead of the consensus forecast of 3.7%. September’s figure came in at 3.4%.
Analysts are now looking forward to the Bank of England’s December meeting.
Sources: cnbc.com, forexfactory.com, investing.com
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