The United Kingdom's consumer price index (CPI) for September has risen by 6.7% year-on-year, matching the previous month's increase and surpassing a 6.6% forecast from a Wall Street Journal poll, according to data from the Office for National Statistics (ONS) released on Wednesday.
Core inflation, which excludes food and energy price changes, saw a 6.1% increase, in line with economists' projections. This steady inflation rate presents a complex challenge for the Bank of England (BoE) as it aims to bring down inflation towards its 2% target without triggering a recession.
In an unusual move not seen in almost two years, the BoE decided to keep its benchmark interest rate steady at 5.25% last month. The decision underscores the difficult balance the central bank is trying to strike between controlling rising prices and supporting economic growth.
The persistence of high inflation in the UK raises concerns about the strength of the economy and the effectiveness of monetary policy tools at the disposal of the BoE. With inflation rates far exceeding their target, the bank is under increasing pressure to take action without endangering the country's fragile economic recovery.
The data from ONS indicates that managing inflation remains a critical issue for the UK economy, posing significant challenges for policymakers at a time when they are also grappling with uncertainties related to global economic conditions.
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