UK inflation rose by more than expected to 2.3% for October, exceeding the official 2% target. This rise, up from 1.7% in September, reflects increased energy costs following a 10% hike in the energy price cap and higher prices for food and products like stamps. This news comes amid concerns about inflationary pressures, potentially influenced by global factors such as Donald Trump’s trade policies. The Bank of England’s monetary policy committee (MPC) will weigh these figures in December to decide whether to adjust interest rates further. In early November, the MPC cut the base rate to 4.75%. Additional government spending and tax adjustments from chancellor Rachel Reeves' recent budget may also drive up short-term inflation. One commentator thinks that the impact of Trump’s policies will likely have limited effects on UK GDP and inflation, even under extreme scenarios. Analysts predict the UK base rate could drop to 3.75% by late 2025.