UK Inflation Rises, Surpassing October Expectations

The UK's inflation rate rose to 2.3% in October, up from 1.7% in September, surpassing economists' expectations of 2.2%. This increase was driven primarily by higher electricity and gas prices, following an increase in the energy price cap by Ofgem, which raised average household energy bills by £149 annually. The Bank of England, which targets a 2% inflation rate, may delay further interest rate cuts in response to this inflationary pressure. Retailers and policymakers are concerned about the impact of recent budget measures on consumer prices and confidence. Inflation remains below its peak of 11.1% from October 2022 but has reversed the downward trend observed earlier this year. The Treasury has emphasized that the government is focusing on economic growth and investment to alleviate the cost of living pressures on families.