UK Inflation Rises to 2.3% in October

UK inflation rose unexpectedly to 2.3% in October, up from 1.7% in September, marking the sharpest month-on-month increase in two years. The increase was largely driven by a rise in household energy bills following a 10% hike in the Ofgem Energy Price Cap, which added £149 to typical annual costs. This uptick in inflation raises concerns about consumer spending in the lead-up to Christmas, as expectations for a potential interest rate cut by the Bank of England have diminished. Economists had anticipated a lower inflation rate of 2.2%, but the higher than expected figure indicates pressures on household budgets. The Bank of England is set to review interest rates on December 19, with analysts suggesting that this inflation surge could reduce the chances of a rate cut. Core inflation also increased to 3.3%, highlighting broader price pressures in the economy.