Latest data released by ONS - 17 November 2021
- Prior +3.1%
- Core CPI +3.4% vs +3.0% y/y expected
- Prior +2.9%
The pound is jumping on the beat in the report, with cable moving up from 1.3435 to 1.3470 as EUR/GBP dips just below 0.8400 as well. The hot inflation numbers above will just serve to reaffirm expectations that the BOE should hike rates next month.
Looking at the details, the largest contribution to the surge in annual inflation for the month of October comes from housing and household services, with further jumps seen in transport and restaurants and hotels.
The latter is largely due to base effects amid the 'Eat Out to Help Out' scheme introduced last year, with the inflation contribution in this division being the largest since January 2006.
