020 7898 0500Although the figure came in better than expected, the UK’s consumer price index came in at 3% which means it held at September’s five-year high of 3%. More worrying was the news that essential items like food increased by 4.1% and, as wage growth continues to hover around the 2% mark, represents a real challenge for the UK’s poorest households.
Given that UK inflation didn’t increase again to 3.1%, there were some who voiced concern that the Bank of England has raised interest rates too early. Keeping inflation in check was cited as one of the key reasons for hiking rates, but on yesterday’s evidence, perhaps the Bank acted too soon. Given that consumers continue to rein in their spending and the UK economy is weak at present, it does offer food for thought.
Meanwhile, fallout over the Brexit bill continued as Theresa May faces a Tory rebellion against the fact she has put the date at which the UK will withdraw the European Union in the bill. There was also some concern that while MPs will be able to vote on the final terms of withdrawal, as it stands it will simply be a take it or leave it scenario – meaning that were MPs to vote against the terms of withdrawal, then no deal would be struck before Britain left the EU.
Today we have the unemployment rate figures from the UK. It is expected to remain at their current rate of 4.3%.
