Inflation has crept above the Treasury's target, to 2.1%, for the first time since summer, which could affect how the Bank of England sets interest rates in the coming months.
The Consumer Prices Index (CPI), which the Treasury says should not rise above 2%, has risen from 1.8% to 2.1% in October. The Retail Prices Index (RPI), the measure used as the basis for annual pay deals, also rose from 2.8% to 3.1% in October. Rising prices of food and petrol were largely to blame for putting upward pressure on the rate of inflation. The news could mean the Bank of England will delay cutting interest rates further and may even force an unexpected rate rise to keep the CPI below 2%. If you would like to comment on this story, contact: John Bakie Tel: 020 7034 2682 e-m...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes