Chancellor Rachel Reeves says she is working to "deliver economic growth" - but the Lib Dems criticise her "misguided policies".

Bank of England Deputy Governor Dave Ramsden said on Friday that he saw risks to the BoE's inflation target as being two-sided, rather than skewed downwards as before, though he noted that BoE rate cuts did not necessarily need to be slow.

Inflation in the U.K. rose to a 10-month high in January, official figures showed Wednesday, an increase that will likely diminish expectations of rapid interest rate reductions from the Bank of England.

Consumer prices were 3% higher in January than a year earlier, up from 2.5% in December, complicating the picture for the BOE after it said it would cut interest rates gradually.

Inflation in the U.K. rose to a 10-month high in January, an increase that will likely diminish expectations of rapid interest rate reductions from the Bank of England.

Inflation in the U.K. rose to a 10-month high in January, official figures showed Wednesday, an increase that will likely diminish expectations of rapid interest rate reductions from the Bank of England.

A flurry of often contradictory UK economic data and surveys this week has left the Bank of England none the wiser about whether Britain's economy is more at risk of a wave of job losses or a new period of persistently high inflation.

Strong inflation and wage growth data this week suggests the Bank of England will cut interest rates more steadily than previously expected this year, UBS economists Anna Titareva and Reinhard Cluse say in a note.

British equities closed lower on Wednesday, as investors trimmed their bets on the pace of interest rate cuts by the Bank of England following stronger-than-expected inflation data.

A combination of these rising costs (some of which apply to the average Brit) pushed inflation up to 3% in January, a 10-month high. That’s above what was expected and pushes price growth even further away from the Bank of England’s 2% target.

British pay growth accelerated in late 2024, according to data that suggested the jobs market was holding up and underscored why the Bank of England has been cautious about cutting interest rates despite a weak overall economy.

UK inflation risks have increased because of stronger than expected pay growth, a senior Bank of England rate-setter said, as he emphasised the need to proceed with “gradual” monetary policy easing. Dave Ramsden,