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IoD press release Rising prices across the wider economy means Bank of England will not hesitate to raise rates further

Commenting on today’s data from the Office of National Statistics, that showed the annual rate of CPI inflation rising from 9.9% to 10.1% in September, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“The slight rise in inflation in September is due to higher food prices, notably the cost of basic staples such as bread and cereals, dairy and meat. Set against this is the fall in petrol pump prices across the month, without which inflation would have been even higher.

“Aside from food, there were notable price increases across the board in September, from restaurants, hotels and airfares through to household purchases such as washing machines, electric fans and vacuum cleaners.

“Although the price of electricity and gas was unchanged this month, the cost of liquid delivered kerosene rose earlier than usual this year, perhaps suggesting households that rely on oil heating are trying to get ahead of themselves on stocking up for the winter.

“With prices continuing to rise across the wider economy, combined with last week’s news that unemployment remains very low, the Bank of England will not hesitate to raise interest rates further when it meets in early November.”

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