Inflation jumps to 3%

at 3% inflation is now at its highest point in the last 10 months.  There was an expectation it was going to rise with many capping it at 2.8%.  

What was the cause?

There were a few items that caused the increase, some more predictable than others.  Items in the basket of goods used to measure inflation that went up or didn't come down as much as expected included:

• Private School fees
• Meat
• Bread
• Airfares

The political arguing goes on.  The Chancellor argues that her mission is to get more pounds in the pocket, none of feel that is happening I'm sure.  Others suggest her policies are the cause and she is misguided.  Of course, the record tax increases and bumper pay rises won't be helping.  The common suggestion is simply that the Chancellor is out of her depth.

For reference the ONS chart to this point.

Up down, up down!

What about interest rates?

Not good news.  The Bank of England will likely take this latest rise as a nod to be more cautious about reducing rates.  The next meeting of the monetary policy committee is on the 20th March 2025.  The next inflation data will not be released until after the meeting on the 26th March 2025.