Inflation in U.K. More than Doubled the Target Level of Bank of England

Inflation reading in the U.K. surged in October more than expected. The inflation number now is more than double compared to the target set by the Bank of England (BOE).

According to the Office of National Statistics, the inflation number came in as 4.2% in October compared to a year earlier. In September inflation was at 3.1%. Reuters poll earlier suggested an expected figure of 3.9%.

The BOE earlier this month defied investors expectation of being the first bank in the world to hike rates rather the regulator maintaining interest rate.

In a revised forecast the BOE projects inflation to be rise further to 5% in the spring of 2022 and falling back toward 2% target level by late 2023 supported by higher oil prices and elevated demand for goods moderates.

Meanwhile, Euro zone inflation data reached 13- year high in October increasing by 4.1% as the trade bloc struggles with soaring energy costs and renewed restrictions to contain COVID-19 pandemic.