The U.K.’s inflation rate remained steady at 6.7% in September, contrary to economists’ predictions of a decrease, according to a report released by the Office for National Statistics on Wednesday. This rate is triple the Bank of England’s 2% target, sparking concerns among homeowners about enduring high rates.
Despite the high inflation rate, no increase in interest rates is expected in the upcoming policy meeting, maintaining the prime borrowing rate at a 15-year record of 5.25%. This decision comes after nearly two years of consecutive interest rate hikes which saw inflation fall from over 11%.
James Smith from the Resolution Foundation anticipates a significant decrease in inflation next month as energy prices are expected to decline. However, the U.K.’s inflation continues to be the highest among the Group of Seven leading industrial economies. This is largely attributed to worker shortages and increased business expenses due to trade frictions following Brexit.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here