UK inflation as measured by the Consumer Prices Index (CPI)undershot forecasts to stay at 3% in October, the Office for National Statistics reported on Tuesday.
Sterling was hit - down 0.6% against the euro - as inflation came in lower than analysts' forecasts of a year-on-year rise of 3.1%, with traders re-evaluating what this could mean in terms of the Bank of England's already dovish outlook for further interest rate rises. The Bank of England (BoE) had previously warned the inflation rate could hit 3.2% this autumn, before falling back. But as inflation did not rise above a five-year high of 3%, BoE governor Mark Carney narrowly avoided being forced to write a letter to Chancellor Philip Hammond explaining why it was so far above the Bank's ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
