Inflation has risen to 2.2%
For the first time since December 2023 Inflation has risen, reaching 2.2%. This comes after a positive year of decline as it got as low as 2% in June and held steady.
This increase was expected and a further one is expected later in the year before the rate begins to decline again. The Bank of England expects it to rise as much as to 2.75% before beginning to fall.
The rise is reported to be due the costs of electricity and gas not falling as quickly as they did a year ago.
The Bank of England
The money markets believe there is a 45% chance that the Bank Rate will be cut to 4.75% next month falling from its current rate of 5%. As well as a 55% chance that borrowing costs will remain the same.
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