UK inflation holds steady at 3%

The key inflation rate for the United Kingdom remained at a five and a half year steady rate of 3%. Much of this is due to the brexit referendum of last year which caused a lower valuation of the pound and has increased the cost of many imported goods and services. While there was a rise in food prices, the lower cost of fuel and other household goods balanced that out. Consumers will continue to see a gap between wages and the cost of living.

Key Takeaways:

Official figures show that the UK’s key inflation rate has remained steady at 3% in the month of October, which is a five-and-a-half year high.
According to the Office for National Statistics, higher than average food prices were somewhat offset by lower fuel costs, while the price of non-alcoholic drinks is at its highest in four years.
According to chief economist Yael Selfin of KPMG, this positive news about inflation could cause the Bank of England to rise rates fewer times over the next two to three years.

“The fall in the value of the pound since last year’s Brexit referendum has contributed to the recent rise in inflation.”