Inflation set to rise above Bank of England’s target amid higher energy prices – London Business News | Londonlovesbusiness.com

The Office for National Statistics (ONS) will reveal the Consumer Prices Index (CPI) on Wednesday and inflation is expected to rise above the Bank of England’s target of 2%.

It is expected the figures will show a significant rebound for October after falling to a three year low of 1.7% the month before.

The ONS data will show how much prices of good and services has either increased or decreased and it is thought that inflation will rise to 2.2%.

If this happens then it is unlikely that the Bank of England will lower interest rates in December and economist believe higher energy bills is likely to be the main driving factor.

In October Ofgem raised the energy price cap from £1,568 for a typical home to £1,717 which is around a 10% rise.