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Rise lays bare the risks ahead for Labour
The Guardian
|November 21, 2024
Any lingering hope that the Bank of England might deliver a pre-Christmas interest rate cut next month evaporated yesterday after official data showed inflation jumped to 2.3% in October.
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If it continues to rise Labour will be forced to defend itself against Tory claims that government policy is at least partly responsible.
The consumer prices index (CPI) had been expected to creep up after dipping to 1.7% in September, but 2.3% was stronger than predicted.
September was the first time inflation had fallen below the Bank's 2% target since July 2021, and looks likely to be the last for a while. And the Tories are keen to hammer home the message that any increase from now on will be down to Labour. The shadow chancellor, Mel Stride, said: "Labour's budget will push up inflation and mortgage rates."
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