The Consumer Price Index (CPI) figures in the United Kingdom reveal that the CPI remains stable at 6.7% in September, which is higher than the anticipated decrease to 6.6%. This has led to expectations that the Bank of England (BoE) may raise interest rates in November.

The Office for National Statistics (ONS) has reported that wage growth can still be observed in the past quarter, even though wage growth may not be as robust as earlier in the year. Nevertheless, these encouraging figures allow the BoE to potentially keep interest rates higher for a longer period.

When considering income figures, the average income, excluding bonuses, remains unchanged at 7.8%, in line with expectations. However, total pay, including bonuses, for the third quarter has decreased to 8.1%, which is below the market consensus of 8.3%.

In a statement made on the past Wednesday, the President of the European Central Bank (ECB), Christine Lagarde, noted that core CPI remains robust, and wage growth continues to be at elevated levels, leading to expectations that the ECB will raise interest rates in the near future.