UK INFLATION LAGS BEHIND EUROZONE – UK inflation in October dropped for the first time in five months
Britain has become an “outlier” on inflation as minimum wage rises, pressure employers to pass on costs to consumers, economists have warned.
UK inflation in October dropped for the first time in five months, official data showed on Wednesday, as energy prices rose at a slower pace than last year.
The consumer prices index (CPI) rate of inflation dropped to 3.6pc in October, having been stuck at 3.8pc since July, according to the Office for National Statistics (ONS).
Economists said this remained “stubbornly high” compared to the eurozone, where inflation dropped to 2.1pc over the same period.
Julian Jessop, economics fellow at the Institute of Economic Affairs think tank, said the “worryingly large gap” was a result of the Chancellor’s decision to raise costs for businesses.
Rachel Reeves raised taxes by £40bn in the Budget last year, including increasing employer National Insurance contributions and the national minimum wage from April. Bosses expect more tax rises to be announced in her Budget next week.
