UK inflation rises to 2.3% in October as Bank of England prepares for interest rate decision

Inflation in the UK rose to 2.3% in October, the fastest increase in two years, driven by higher energy costs. This surge has led to expectations that the Bank of England will maintain its interest rate at 4.75% during its upcoming meeting on December 19. Earlier this year, inflation had dipped below the Bank's 2% target, prompting rate cuts in August and November. However, the recent inflation spike has diminished hopes for further cuts before the end of the year. The Bank's Governor, Andrew Bailey, noted uncertainty regarding the impact of recent tax hikes on businesses. A slight decline in GDP in October adds complexity to the decision-making process, but economists predict growth will resume, keeping the Bank's cautious approach intact.