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Inflation has risen by more than expected due to an increase in energy bills, according to official figures.

It’s the first rise in the rate of price increases, as measured by the consumer prices index (CPI), for three months.

The figure stood at 2.3% in October, according to the Office for National Statistics (ONS), above the 2.2% forecast by economists.

This is also a sizeable increase on the 1.7% recorded a month earlier.

Household gas and electricity bills rose last month as the energy price cap brought the cost of a typical annual bill up by an extra £12 a month.

Inflation wasn’t higher because there were falls in live music and theatre ticket prices and continued drops in the cost of raw materials due to cheaper oil.

Money blog: Follow live reaction to inflation news

Latest inflation data will be cause for concern for rate-setters



Gurpreet Narwan

Business and economics correspondent

@gurpreetnarwan

How worried should we be about this inflation news?

These figures are a world away from the double-digit levels of inflation we experienced in 2022, when the index peaked at 11.1%. Inflation has broadly been coming down as the Bank of England has ratcheted up interest rates.

However, Labour’s budget has created inflation jitters. The government is injecting a big fiscal stimulus into the economy in the form of higher government spending.

The rise in employers’ national insurance contributions could also lead to higher prices.

This has raised the inflation forecasts and likely slowed the pace of interest rate cuts.

Read Gurpreet Narwan’s full analysis of the inflation news.

What about interest rates?

Today’s data may affect the likelihood of the Bank of England cutting interest rates next month.

Before the inflation figure was announced, there was a 78.3% chance of no change – and a 21.7% chance that the cost of borrowing would fall by 0.25 percentage points, according to market expectations.

After the announcement that changed to 84% chance of no cut.

Also on the up was another important measure of inflation watched by the Bank – core inflation, which measures price rises but excludes food and energy costs as they’re liable to sharply fall or rise.

Core inflation rose to 3.3%, more than the 3.1% expected by economists polled by Reuters.

Services inflation also came in above forecast and higher than a month ago at 5%.

Political reaction

Darren Jones, the chief secretary to the Treasury, said the government understands people are struggling after the inflation announcement.

He said: “We know that families across Britain are still struggling with the cost of living. That is why the budget last month focused on fixing the foundation of our economy so we can deliver change.

“But we know there is more to do. That is why the government is focused on economic growth and investment so we can make every part of the country better off.”

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But shadow chancellor Mel Stride said: “It’s higher inflation and lower growth under Labour.

“What is worrying about today’s announcement is that inflation is running ahead of expectations and official forecasts state these figures are not expected to improve.

“Labour’s budget will push up inflation and mortgage rates.”

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Three US crypto bills revived after initial failure in House vote

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Three US crypto bills revived after initial failure in House vote

Three US crypto bills revived after initial failure in House vote

Though the House of Representatives may soon be able to consider the three bills, President Donald Trump didn’t get all Republicans to fall in line to support the legislation.

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EU sanctions crypto entities for election interference, disinformation

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EU sanctions crypto entities for election interference, disinformation

EU sanctions crypto entities for election interference, disinformation

The EU has sanctioned multiple entities for using cryptocurrencies to evade restrictions, channel funds, and propagate pro‑Russian disinformation and election interference.

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Starmer says former Tory ministers have ‘serious questions to answer’ over Afghan data breach

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Starmer says former Tory ministers have 'serious questions to answer' over Afghan data breach

Sir Keir Starmer has said former Tory ministers have “serious questions to answer” about how the names of Afghans who worked with UK forces were exposed.

Nearly 7,000 Afghan nationals are being relocated to the UK after their names were accidentally sent in an email in February 2022, when Boris Johnson was prime minister, but the leak was only discovered by the British military in August 2023, when Rishi Sunak was PM.

A super-injunction, preventing the reporting of the mistake, was imposed that year in an attempt to prevent the Taliban from finding out about the leak.

The Conservative government at the time then started transporting thousands of Afghans to the UK in secret as they were in danger.

On Tuesday, the injunction was lifted.

Politics latest: Starmer hammered over unexpected inflation rise

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Victim of Afghan data breach speaks to Sky

Kicking off Prime Minister’s Questions, Sir Keir said: “Ministers who served under the party opposite have serious questions to answer about how this was ever allowed to happen.

“The chair of the defence committee has indicated that he intends to hold further inquiries.

“I welcome that and hope that those who are in office at the time will welcome that scrutiny.”

The data breach saw a defence official accidentally release details of almost 19,000 people seeking to flee Afghanistan after the return of the Taliban.

Conservative leader Kemi Badenoch avoided mentioning the data breach, but Lib Dem leader Sir Ed Davey said it was “shocking” how it had been kept secret for three years.

Sir Ed said the prime minister will have the Lib Dems’ support if he decides to pursue a public inquiry.

Mr Healey’s Tory predecessor, Sir Ben Wallace, said he makes “no apology” for applying for the initial four-month injunction and insisted it was “not a cover-up”.

The scheme, which had been kept under wraps until yesterday, has so far cost hundreds of millions of pounds.

However, the total cost to the taxpayer of existing schemes to assist Afghans who are deemed eligible for British support, as well as the additional cost from the breach, will come to at least £6bn.

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Afghans being relocated after data breach

Earlier, Defence Secretary John Healey told Sky News he is “deeply uncomfortable” with the government using a super-injunction to keep the massive data breach hidden.

He said: “I’m really deeply uncomfortable with the idea that a government applies for a super-injunction.

“If there are any [other] super-injunctions in place, I just have to tell you – I don’t know about them. I haven’t been read into them.

“The important thing here now is that we’ve closed the scheme.”

Mr Healey was informed of the breach while in opposition, and earlier this year he commissioned a review that led to the injunction being lifted.

He said “accountability starts now” and added Labour had to deal with the risks, court papers, intelligence assessments and different schemes when they came to power last summer before they could lift the injunction.

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