Inflation Surges in the U. K. , Hitting 2. 3% in October

In October, the U. K. saw a surprising jump in inflation, reaching 2. 3%. This is higher than the expected 2. 2% and a significant increase from September's 1. 7%. The news might put a pause on the Bank of England's plans to lower interest rates in December. The Bank aims to keep inflation at 2%, but this recent surge has pushed it above that target. Energy prices played a big role in this increase. A change in the energy price cap that kicked in during October led to higher energy bills, which are expected to keep inflation rates up during the winter. The services sector, which is a major part of the U. K. economy, also saw a slight increase in prices, rising to 5. 0% from 4. 9%. The British pound reacted to this news, slightly increasing in value against the dollar and euro. Economists are now predicting that inflation could stay above the Bank of England's target until at least 2025. This is due to factors like rising energy bills, the impact of the government's budget, and global trade issues.