U.K. Consumer Prices Rise 3.1% in September

The transcript discusses the Bank of England's recent data release, which shows a consumer price growth of 3.1% in September, slightly below the forecast. Despite this, the rate remains above the bank's 2% target, leading to market expectations of a rate hike in November. The inflation spike poses challenges for British households, especially with government tax increases and benefit cuts. The Treasury is resisting an expansionary budget to avoid pressuring the Bank of England to raise rates, highlighting the tension between monetary and fiscal policy. Rishi Sunak plans to manage public finances now and increase spending closer to the election.

What recent data has influenced the Bank of England's policy decisions?

How does the current inflation rate compare to the Bank of England's target?

What implications does the inflation rate have for British households according to the Resolution Foundation?

What is the government's current approach regarding fiscal policy in light of inflation?

What are the potential consequences of an expansionary budget on the Bank of England's interest rates?