In October 2024, UK inflation rose to 2.3%, up from 1.7% in September, exceeding expectations of 2.2%.

Despite this increase, inflation remains significantly lower than its peak of 11.1% recorded two years ago.

The cost of living crisis continues to affect vulnerable individuals, despite the lower inflation rate.

Treasury Chief Secretary Darren Jones acknowledged the ongoing cost of living crisis and highlighted the government's commitment to economic growth through initiatives like raising the national minimum wage and freezing fuel duty.

Shadow Chancellor Mel Stride expressed concerns over rising inflation and its impact on mortgage rates, attributing these issues to government policies.

Bank Governor Andrew Bailey indicated that interest rates are unlikely to decrease quickly due to recent budget measures from the Labour government, which may contribute to higher prices.

With rising mortgage rates, homeowners face financial challenges, posing political risks for Labour as they navigate this economic landscape.

Predictions suggest inflation could rise again, potentially nearing 3% by spring 2025, although future trends remain uncertain.

Economists forecast that inflation will stay above the 2% target into 2025, driven by rising energy costs and fiscal policies.

The Office for Budget Responsibility estimates that the recent budget could raise inflation by approximately 0.5% due to higher government spending.

Future price trends are uncertain, influenced by domestic policies and international events, including potential tariffs and geopolitical conflicts.

ONS chief economist Grant Fitzner noted that the recent inflation spike was significantly influenced by increased energy prices, despite some decreases in other areas like recreation.