Britain’s annual inflation rate rose to the highest it has been since October 1981. The data released by the ONS this morning revealed that inflation jumped to 11.1%, from 10.1% in September. The inflation rate is much higher than markets were expecting (10.7%).
This is against the backdrop of higher taxes and a squeeze on public spending expected in the chancellor’s Autumn Statement tomorrow.
Jeremy Hunt is set to return to orthodox economics, with plans aimed at filling the hole in public finances, as well as tackling the current cost of living crisis.
Rishi Sunak said that, “the number one challenge we face is inflation.” He also added that the UK is “not alone in that” as “Germany and Italy have inflation that is even higher than ours at the moment.”
Yesterday evening, missiles landed in Poland near its border with Ukraine. Two citizens were killed and Poland convened emergency talks with its NATO allies.
President Joe Biden called an emergency meeting of G7 and NATO leaders early this morning.
Dollar-watchers can expect several interesting data releases today however the key one to watch will be retail sales at 2:30pm UK time.
Later this evening, US economist and member of the Federal Reserve’s Board of Governors, Christopher Waller will speak on inflation.
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