Cost of living and inflation are not the same thing

Published On Nov 20, 2024, 8:28 AM

The inflation rate in the UK has increased to 2.3% in October, primarily due to rising energy costs, signaling ongoing pressures on the cost of living. People are experiencing hardship, especially with the cold winter approaching and reduced government support. Although the overall inflation spike has lessened, the underlying inflation measures, including services and core inflation, are showing unexpected increases. This could prompt businesses to raise prices. The Bank of England is expected to gradually reduce interest rates over the coming year, but uncertainty remains over future inflation trends. The potential for lower gas prices and other economic conditions could impact this.