Inflation rise in UK

Story link: Inflation rise in UK

Inflation is on its way up in the UK, reaching 1.5% for October:

UK inflation rises to 1.5% in October

The Office for National Statistics has today announced that Consumer Price Inflation (CPI) rose for the first time in eight months to 1.5% in October from a 5-year low of 1.1% in September.

The rise was not unexpected after a sharp fall in transport costs last year was not repeated this year and because fuel prices had seen record falls this time last year.

The real question everyone will be asking is whether this is simply a technical rise, which will continue a few more months before falling back again – as the Bank of England believes – or whether this is a sign of inflation about to run out of control.

There are two main camps for the latter – one thinks we face deflation in the near term, while the other thinks we face hyper-inflation in the medium term. Both camps are not, however exclusive.

That means you can be sure inflation is going to be watched even more closely than ever, for warning signs of one or the other scenario playing out.