Ggood morning
UK inflation has returned to double digits as the latest data from the ONS shows that consumer prices rose by 10.1pc in the year through September. This is a slight increase from August when it was 9.9pc and just above forecasts of 10pc.
On a monthly basis, consumer prices rose by 0.5pc in September, which is the same as in August. Food and non-alcoholic drinks were the largest drivers of inflation, rising by 14.5pc – up from 13.1pc in August. This will pile more pressure on households at a time when bills and mortgage costs are already rising rapidly.
This comes as the Government refuses to rule out scrapping the triple lock, which dictates that pensions rise by the highest of inflation, average earnings, or 2.5pc. The September inflation figure is crucial as it is used to determine state pension increases from next April. Abandoning the policy could see pensions fall significantly in real terms for millions of pensioners.
5 things to start your day
1) Netflix bucks inflation crisis as it adds 2m viewers Paid subscribers using the service rose to by 2.4m after six months of decline
2) Union leaders threaten winter of mass strikes ‘to end pay crisis’ Rail union boss demands ‘uprising’ as Bonfire Night strikes are announced
3) Benefit claimant lists to be shared with energy companies under proposal to support vulnerable A tiered pricing mechanism was also raised in early talks between Whitehall and industry
4) Green energy tax raid risks giving EU a lead in offshore wind Maintaining UK leadership in renewable energy is not a given – others are snapping at our heels
5) Britain is set for an almighty squeeze worse than 1976 The challenges in the 70s – loss of international competitiveness, terrible industrial relations and rampant inflation – look relatively tame compared to what we face today.
What happened overnight
Asian shares were mostly higher on Wednesday, with US corporate earnings aiding sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.2pc, but further gains were capped by slight falls in Chinese shares. China’s mainland bluechips lost 0.2pc, while Hong Kong’s Hang Sang index fell 0.1pc.
Meanwhile, Japan’s Nikkei advanced 0.4pc, Australia’s resources-heavy shares gained 0.4pc and South Korea rebounded 0.5pc.
US S&P 500 futures rose 0.8pc and the Nasdaq futures jumped 1.3pc.
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