The UK inflation rate reached its highest point in over five years in September 2017.
The Consumer Prices Index (CPI) climbed to 3% for the month, a level it hasn't reached since April 2012, and an increase on the 2.9% recorded in August.
The rate was driven up by “increases in transport and food prices”, writes the BBC, while Mark Carney, governor of the Bank of England, has said that the rate is likely to keep rising due to the current weakness of the pound.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“The sole reason that inflation has gone up as much as it has is the depreciation of sterling,” Carney told the Treasury Committee today.
The inflation increase “raises the likelihood of an increase in interest rates next months”, writes the BBC. Interest rates currently sit at 0.25%.
The Guardian says the increase is bad news for workers, “as average wages only rose by 2.1% per year in the three months to July”, but that pensioners “can look forward to a 3% increase in the basic state pension next April”, as pensions rise in line with earnings growth under the triple-lock system.
ONS head of inflation Mike Prestwood told the BBC that: “Food prices and a range of transport costs helped to push up inflation in September. These effects were partly offset by clothing prices that rose less strongly than this time last year.”
-
Violent videos of Charlie Kirk’s death are renewing debate over online censorshipTalking Points Social media ‘promises unfiltered access, but without guarantees of truth and without protection from harm’
-
What led to Poland invoking NATO’s Article 4 and where could it lead?TODAY'S BIG QUESTION After a Russian drone blitz, Warsaw’s rare move to invoke the important NATO statute has potentially moved Europe closer to continent-wide warfare
-
Africa could become the next frontier for space programsThe Explainer China and the US are both working on space applications for Africa
-
Economists fear US inflation data less reliablespeed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Tariffs were supposed to drive inflation. Why hasn't that happened?Talking Points Businesses' planning ahead helped. But uncertainty still looms.
-
Why is the threat of stagflation rising?Talking Points Inflation is sticky. Trump's tariffs won't help.
-
Pros and cons of tariffsPros and Cons As Trump imposes tariffs on cars from overseas, here are the arguments for and against duties
-
Is inflation about to surge again?Talking Points The Federal Reserve is cautious about Trump's policies
-
US economy still strong in final preelection reportSpeed Read It grew at a solid 2.8% annual rate from July through September
-
Fed cuts rates half a point, hinting victory on inflationSpeed Read This is the Fed's first cut in two years
-
US inflation drops below 3%, teeing up rate cutsSpeed Read This solidifies expectations that the Federal Reserve will finally cut interest rates in September
