University – November 2021

University – November 2021

October was a big month for announcements, with the September CPI numbers being published on 20 October. The anticipation of a very high inflation print didn’t completely come to pass – at 3.1% it was only just over the level above which the Bank of England governor needs to write to the Chancellor to atone for their failure to keep within 1% of the 2% CPI target level. The more modest inflation print avoided putting companies in a difficult place to pass on the 3.1% in full to customers, many of whom facing the pressure of tax and cost of living increases.

The inflation story is unlikely to go away. Not least because the September index level was 112.4 up from 109.1 a year earlier, but also in the context that the 109.1 level remained pretty flat for several months thereafter – it dipped down to 108.9 and then re-attained 109.1 five months later in February 2021. Any big movements between now and next February, and to a lesser extent beyond then, will produce bigger reported annual increases. So, the scene is set for some more exciting inflation reports than September’s…Download the full market update.