Steady inflation in UK creates doubt about more interest-rate hikes
London — British inflation unexpectedly held steady in October, wrong-footing the Bank of England and raising fresh questions about how fast the central bank will follow up on this month’s interest-rate hike. The annual rate of consumer price inflation (CPI) was unchanged from September’s five-and-a-half-year high of 3.0%, official data showed. When the central bank raised rates for the first time in a decade in early November, it said it expected inflation would hit 3.2% in October before starting to fall slowly towards its 2% target. "Red faces all round as UK inflation fails to rise as widely expected, not least by the Bank of England," said Chris Williamson, chief business economist at financial data company IHS Markit. Sterling fell against the dollar and British government bond prices rose as markets lengthened the odds slightly on a new rate hike in the foreseeable future.
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