The latest U.K. inflation data should be a “wake-up” call for anyone betting on another interest rate cut from the Bank of England this year, economists cautioned Wednesday.
The annual inflation rate was unchanged in September, coming in at 3.8%, marking the third month in a row of price rises at this level.
The data, released by the Office for National Statistics (ONS) Wednesday, shows that the financial squeeze on consumers and businesses remains high, but there are hopes this could be the peak.
The Bank of England forecast earlier this year that the consumer price index would top out at 4% — double the central bank’s target — in September, before gradually cooling into next year. Economists polled by Reuters had also expected the rate to rise to 4% in the twelve months to September.
September core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by an annual 3.5% in the year to September, down from 3.6% in August.
