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ABC10 News at 6 - NewsBreak

There was no surprise that the rate of inflation jumped again, News Today reflecting the recent hike in the energy price cap.

The new news today is that other underlying measures of inflation, for example services, and "core" inflation, both of which are watched closely by the Bank of England as an indication of domestic price pressures, both rose slightly and by more than expected.

It comes as an increasing number of firms warn that the tax rises and the higher minimum wage announced in the Budget could lead them to increase prices for customers.

In January, Donald Trump, comes into power as the US president, threating a blanket 20% tariff on all imports into the US.

Putting this all together and inflation could be on the up into spring next year, not far off 3%.

But the path of inflation going forward is unusually uncertain and Bank of England officials, who decide whether to raise or cut interest rates, are divided.

Four of the nine-strong Monetary Policy committee on Tuesday said it was was not clear whether prices rises will accelerate or slow in the coming months.

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