The Bank of England’s new chief economist has said that UK inflation could go above 5% next year.
Huw Pill told The Financial Times: “I would not be shocked — let’s put it that way — if we see an inflation print close to or above 5%. And that’s a very uncomfortable place for a central bank with an inflation target of 2% to be.”
This September saw inflation dip to 3.1% – down from 3.2% in August. According to the Office for National Statistics, the rise in petrol prices and transport were the biggest contributors.
Mike Hardie, head of prices at the ONS, commented: “However, this was partially offset by most other categories, including price rises for furniture and household goods and food prices falling more slowly than this time last year.”
“The costs of goods produced by factories rose again, with metals and machinery showing a notable price rise. Road freight costs for UK businesses also continued to rise across the summer.”
