UK Inflation Rises to 3.5% Amid Global Energy Costs
The Office for National Statistics reported a September inflation jump to 3.5%, prompting investor expectations for a Bank of England interest rate hike in November.
The Office for National Statistics reported that U.K. consumer prices rose 3.5% in September compared to a year earlier. This figure exceeds the 3.1% recorded in August and slightly surpasses economist expectations of 3.4%.
Rising global energy costs linked to the war between the United States and Iran drove the increase. Core inflation rose to 2.8% and services inflation increased to 3.7% during the same period.
These figures complicate efforts by the Bank of England to reach its 2% inflation target. While the bank maintained its key interest rate at 3.75% in September, investors now anticipate a rate increase at the November 5 meeting due to the deteriorating inflation outlook and rising weekly earnings growth.
