From Morningstar: 2024-10-11 05:25:00

The UK’s inflation rate is expected to have fallen in September to 2.1% from 2.2% in August, still slightly above the Bank of England’s target. Core inflation, excluding volatile food and energy prices, is forecasted to drop to 3.5% from 3.6% in August. Rates are expected to be cut from 5% to 4.75% at the Nov. 7 Bank of England meeting.

In light of escalating conflict in the Middle East, oil prices have remained stable. The pound strengthened to $1.34 against the US dollar in September, up from $1.22 a year ago. A stronger currency can make imports cheaper but raise export prices. Domestic energy prices have risen due to the lifting of the Ofgem price cap on Oct. 1.

UK inflation peaked above 11% in 2022 and has since fallen. Bank of England raised interest rates from 0.1% in December 2021 to 5.25% in August 2023. Global central banks, including the US Federal Reserve and European Central Bank, have been cutting interest rates due to falling inflation.



Read more at Morningstar: UK Inflation Data: What to Expect from September’s Data