Rachel Reeves on brink as inflation remains sky high hitting YOUR wallet | UK | News
Inflation remained high in September, increasing pressure on Rachel Reeves ahead of next month’s Autumn Budget. According to the statement made today by the National Statistics Office, the Consumer Price Index (CPI) inflation rate remained unchanged at 3.8% in September.
Economists had predicted that the increase would increase to 4% after the CPI rate remained at 3.8% in July and August. However, this figure means that the CPI remains at almost double the Bank of England’s target rate of 2%. ONS chief economist Grant Fitzner said: “A range of price movements meant inflation remained broadly unchanged in September. The biggest drivers of rise came from oil prices and airline tickets, where the fall in prices compared to last year eased. These were offset by lower prices on a range of entertainment and cultural purchases, including live events. The cost of food and non-alcoholic drinks was also the first since May last year. fell down.”
Ahead of the announcement, economists at Pantheon Macroeconomics predicted that higher motor fuel and airfare prices would help push inflation to 4%.
Although the rise to a 21-month high did not materialise, inflation remains high, impacting UK households and costs of living.
Higher levels of inflation will increase pressure on government borrowing and make it harder for the Bank of England to justify further interest rate cuts.
It comes ahead of the Autumn Budget, when the Chancellor is expected to announce multibillion-dollar tax rises on November 26.
Responding to the figures, Ms Reeves said she was “not happy” with the rate of inflation and would do more to “bring prices down” in the budget. “I am committed to making sure we support people struggling with higher bills and cost-of-living challenges, deliver economic growth, and build an economy that works for and rewards working people,” he added.
Kevin Mountford, co-founder of Raisin UK and personal finance expert, said: “Today’s figures show that inflation is still high, which puts the cost of living at the forefront for many Brits. Borrowing costs are unlikely to fall any time soon, meaning mortgage and loan repayments will remain high for the foreseeable future.”
Schroders senior economist George Brown added that inflation near 4 percent should “act as a wake-up call for markets.” “There is a risk that high inflation will become entrenched in the UK due to a combination of disappointing productivity and sticky wage growth,” he warned.
