A rise in energy prices pushed UK inflation to its highest rate for six months, new figures reveal this morning.
According to the Office for National Statistics, the inflation rate hit 2.3 per cent in the year to October, a bigger-than-expected increase from 1.7 in September.
It follows the lifting of the energy price cap which saw annual gas an electricity bills for a typical household go up by about £149 last month.
The rise in inflation reduces the prospect of further interest rate cuts in the coming months, business leaders said.
Raj Kandola said: “The rate of inflation crept up higher than expected as the lifting of the energy price cap impacted the overall headline figure.
“Given the additional borrowing announced in the Budget coupled with the possibility of the Trump administration pushing ahead with new tariffs, it's unlikely we will see a fall in the headline rate before Christmas.
“All of this reduces the prospect of an interest rate cut in the coming months.
“Data from our latest Quarterly Business Report reveals the underlying cost pressures which businesses face on an ongoing basis, all of which will be elevated by the rise in the national minimum wage and changes to national insurance contributions.
“It's imperative the Government takes action in the coming months to reduce these price pressures across areas such as business rates, international trade and making it easier to access talent if we are to raise confidence amongst a rather weary business community.”
