UK Inflation Rises More Than Expected to 3.5% in September Ahead of Budget
LONDON — Britain's annual consumer price inflation rose to 3.5 percent in September from 3.1 percent in August, more than expected, official figures released on October 21 showed. A Reuters poll of economists had forecast 3.4 percent, while the Bank of England predicted 3.0 percent in July; the rise was driven by energy prices pushed up by the Iran war.
Finance minister John Healey is due to deliver his first budget on October 28. Separate data on Wednesday showed government borrowing of 24.52 billion pounds in September, above the 23.85 billion forecast, and public sector debt exceeding 3 trillion pounds for the first time, although the Office for National Statistics said debt as a share of the economy was lower than a year earlier.
The Bank of England has said the energy shock has had a limited impact on broader inflation so far, but Governor Andrew Bailey and other policymakers have said the likelihood of a rate hike grows the longer energy prices stay elevated. Investors expect the central bank to raise Bank Rate to 4 percent next month, its first increase in three years; it has held policy since the outbreak of the US-Iran war in February.
Britain has been more affected than most Western countries by the war in the Gulf due to its heavy reliance on imported natural gas, Reuters noted. Labour market data released on Tuesday showed signs of stabilisation, potentially adding to the case for a rate hike.
Source: GSM · USA (original Chinese edition)
Photo: 自泰晤士河南岸眺望伦敦金融城。图片：© Jim Linwood / CC BY 2.0，Wikimedia Commons
