Bank of England faces inflation challenge after October data

UK inflation climbed to 2.3% in October, surpassing forecasts and exceeding the Bank of England’s 2% target, according to the latest CPI data. Higher energy costs, driven by a 10% increase in Ofgem’s price cap, contributed significantly to the rise. Core inflation also edged higher, reaching 3.3%, while services inflation hit 5%. Despite recent interest rate cuts, the Bank of England is expected to pause further reductions until early 2025, as policymakers assess the inflationary impact of fiscal measures from the recent UK Budget. The unexpected inflation uptick underscores the delicate...