Bank of England 'showdown' on inflation imminent

Inflation rises to 4.2% in October

News that CPI figures came in at 4.2% in October, their highest level since 2011, beating out both market and economist expectations, has placed increasing pressure on the Bank of England (BoE) to raise interest rates, possibly at its next meeting in December.

According to data from the Office for National Statistics (ONS), the annual rate of consumer price index rose to 4.2% last month, up from 3.1% in September, the fastest rise since November 2011, beating out predictions of 3.9% from economists. UK inflation reaches highest level in a decade at 4.2% Some market participants are now actively calling on the BoE to take action, citing strong employment figures, published yesterday, as evidence it is now running out of excuses not to act. "After yesterday's strong employment data, the missing piece of the puzzle according to Governor Bai...