Overview

• The UK's inflation rate climbed to 2.3% in October, surpassing the Bank of England's target and economists' forecasts.
• Rising energy costs, due to an increased price cap, were major contributors to the inflation spike, despite declines in other sectors like recreation.
• Core inflation, excluding volatile items, also rose slightly to 3.3%, adding to concerns about persistent price pressures.
• The Bank of England is now less likely to cut interest rates in December, with markets estimating a low probability of further rate reductions this year.
• Recent budget measures from the Labour government, including tax increases, are expected to further elevate inflation in the near term.