From Morningstar: 2024-11-20 04:51:05

In October, UK inflation rose to 2.4%, surpassing the Bank of England’s 2% target and the 2.2% consensus forecast. Core inflation, excluding certain items, also increased to 3.3%, above the 3.2% forecast. This may influence the Bank of England’s decision to keep interest rates steady in December.

Following recent cuts, UK interest rates stand at 4.75%. The Bank of England is expected to maintain this rate in December and possibly continue cutting in February 2025. The Bank projects that new fiscal measures will add 0.50 percentage points to CPI and boost GDP by 0.75 percentage points.

Inflation in the UK has fluctuated, peaking above 11% in 2022 and dropping below 2% in recent months. The trajectory of interest rates has also been volatile, rising from 0.1% in December 2021 to 5.25% in August 2023. Tough comparisons with 2023 may cause inflation to rise again in 2025.



Read more at Morningstar: UK Inflation Rate Moves Above Target