Sunday, December 5, 2021

UK inflation surges to a 10-year high

The cost of living in the U.K. surged in October to a 10-year high, with the figure now more than double the target set by the Bank of England.

The U.K.’s Consumer Prices Index rose by 4.2% in the 12 months to October, up from 3.1% in September. Economists polled by Reuters had a expected a figure of 3.9% for October.

The Bank of England held interest rates steady earlier this month, defying many investors’ expectations that it would become the first major central bank to hike rates following the coronavirus pandemic.

The Bank has been monitoring a confluence of crucial data points as inflation remains persistently high while economic growth moderates and labor conditions tighten. Wednesday’s data will surely add more pressure on the Bank to act at its December meeting. (BBC)

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