The post U.K. inflation surges to 2.3%, outpacing expectations and fueling rate-hold speculation appeared on BitcoinEthereumNews.com.

The UK’s Consumer Price Index (CPI) increased at an annual rate of 2.3% in October after rising by 1.7% in September, according to data released by the Office for National Statistics (ONS) on Wednesday. The October’s rise exceeds the 2.2% forecasted by economists surveyed by Reuters. Rising inflation clouds prospects for further bank of England rate cuts The latest inflation reading pushes inflation back above the Bank of England’s 2% target. This could potentially reduce the likelihood of a final rate cut this year. Following the inflation data, the British pound saw a slight increase, rising 0.1% to $1.2692 at 8:03 a.m. London time. It also gained 0.4% against the euro, trading at €1.20. This inflation reading was at its highest since April, driven by increased household energy bills, per ONS. Core CPI (excluding volatile food and energy items) edged higher by 3.3% YoY in October, up from 3.2% growth in September, outpacing the market forecast of 3.1%. Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, stated that inflation is likely to drift higher from here, with rising energy bills, the impact of the Budget, and global trade frictions likely to keep the headline rate above the Bank of England’s 2% target into 2025. Interest rates are now in focus as the Bank of England prepares for its decision on December 19, though another inflation print will be released before the meeting. The central bank cut rates by 25 basis points earlier this month but indicated that any future rate cuts would be “gradual” in light of continued economic challenges. Bank of England likely to hold rates as inflation risks loom over U.K. economy As of Wednesday, markets were pricing in only a 14% chance of another quarter-point rate reduction this year. Lindsay James,…

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Filed under: News - @ November 20, 2024 11:23 am