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UK Inflation reaches a 10-year high

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Miguel A. Rodriguez
Miguel A. Rodriguez
19 November 2021
The cost of living surged in October in the UK due to rising energy prices

The British Consumer Price Index (CPI) rose by 4.2% in the 12 months to October, up from 3.1% reported in September. The markets were looking for a 3.9% increase. Figures revealed that the cost of living in the UK surged to a 10-year high, as the reading came in more than double the target set by the central bank.

The Bank of England expects inflation to rise to around 5% in the spring of 2022 before falling to a 2% target by late 2023, influenced by the moderate impact of higher oil and gas prices and demand for goods. Also, the Bank of England has been keeping an eye on important data as inflation is still high while economic growth loses momentum, and labor conditions tighten.

At the same time, the Eurozone inflation hit a 13-year high in October, at 4.1%, as the member countries are battling surging energy costs. According to data from Reuters, this marks the highest level since July 2008 and ahead of the consensus forecast of 3.7%. September’s figure came in at 3.4%.

Analysts are now looking forward to the Bank of England’s December meeting.

At the moment of writing, UK100 was trading 0.31% lower, while GBP/USD added 0.23%.

 

Sources: cnbc.com, forexfactory.com, investing.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.