"Headline CPI inflation held at 3.8% in September, a pace unchanged since July, in line with Cebr's forecasts. Overall, the picture for UK households is mixed. Food inflation slowed for the first time since March, from 5.1% to 4.5%, but prices for electricity, gas, and other fuels continued to rise, accelerating to 9.4% in September. Divergent price pressures place the Bank of England at a crossroads."
"With August's data suggesting further loosening in the labour market, and hints of household support in the upcoming November Budget, the case for a rate cut in November is strong, but lingering price pressures complicate the decision. Cebr still expects one further interest rate cut before the end of the year."
Headline CPI inflation held at 3.8% in September, unchanged since July and matching Cebr's forecasts. The outlook for UK households is mixed: food inflation slowed from 5.1% to 4.5% while electricity, gas and other fuel prices accelerated to 9.4% in September. Divergent price pressures place the Bank of England at a crossroads. August data suggest further loosening in the labour market. Hints of household support in the upcoming November Budget strengthen the case for a November rate cut, but persistent price pressures complicate the decision. Cebr expects one further interest rate cut before year-end.
Read at London Business News | Londonlovesbusiness.com
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