UK Inflation Soars to 11.1%

UK Inflation Soars to 11.1%

The UK Consumer Price Index surged to a 41-year high in October reaching 11.1% from a year ago, surpassing the Bank of England’s forecast of 10.9%. Higher energy bills continued to drive headline inflation, meanwhile core inflation which excludes energy and food prices remained unchanged at 6.5%. The pound notched 0.3% higher to $1.19 following the latest inflation print. Governor Andrew Bailey and policy makers have continued to echo a hawkish tone, in which they are prepared to raise rates aggressively until spiralling inflation is sapped. Wage growth has not kept up the momentum with increases in prices which is squeezing real income for UK consumers. However, both weaker growth ahead and waning supply chain disruptions could help to ease price pressures. There is evidence that input costs for businesses have begun to ease, with manufacturing costs coming down in October from levels seen in September.   

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