UK Inflation Rises to 2.3%, Delaying Expected Interest Rate Cuts

Higher energy bills and budget measures contribute to a surprising inflation increase, complicating the Bank of England's monetary policy decisions.

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.