Inflation data delivers triple dose of bad news 20 November 2024 CPI inflation increased by 2.3 per cent in October – a bigger increase than either the Bank of England or markets expected – with increases in core and services inflation completing a triple dose of bad news for families and policy makers, the Resolution Foundation said today (Wednesday). While a rise in inflation was always expected as last year’s fall in energy prices dropped out of the figures and energy bills increased in October this year, the 0.6 percentage points increase (from 1.7 to 2.3 per cent) between September and October was bigger than forecast. Equally disappointing were increases in core inflation (from 3.2 to 3.3 per cent), which had been expected to fall, and closely-watched services inflation which also ticked up from 4.9 to 5.0 per cent. James Smith, Research Director at the Resolution Foundation, said: “A rise in inflation was always expected this month as last year’s energy-price falls dropped out of the calculation and the Ofgem price cap increased in October. But the clean sweep of higher headline, core and services inflation has delivered a triple dose of bad news for families and policy makers alike. “After recent lower-than-expected price rises, today’s data is a reminder that the long tail of elevated inflation from the cost-of-living crisis is still in the economy.”
