Inflation data: Bank of England’s inflation response ‘risks higher borrowing costs for longer’
The Bank of England is risking higher borrowing costs for longer after a hesitant response to increasing inflation, according to leading thinktank. In a searing critique of the central bank's tactics, the National Institute of Economic and Social Research (Niesr) noted a timid increase in…
In this article
In the latest inflation data update, the Bank of England is risking higher borrowing costs for longer after a hesitant response to increasing inflation, according to leading thinktank. In a searing critique of the central bank's tactics, the National Institute of Economic and Social Research (Niesr) noted a timid increase in borrowing costs last week was likely to mean inflation staying above the Bank's 2% target until at least 2030.
Key points
- UK inflation stands at 3.5%, far above the Bank's 2% target, driven higher by the soaring cost of fuel.
- Traders, however, reined in their enthusiasm following US inflation moved up by 0.4 percentage points from September to October.
- The S&P 500 index of leading US firms was down 0.9% by early afternoon on Wall Street.
- He stated there was a "double whammy" from higher energy prices and climbing global borrowing costs that was not being addressed.
- Oil and gas prices have risen strongly since the end of February.
What happened: Inflation data
UK inflation stands at 3.5%, far above the Bank's 2% target, driven higher by the soaring cost of fuel. Oil and gas prices have risen strongly since the end of February, when the US and Israel launched their war on Iran. Traders, however, reined in their enthusiasm following US inflation moved up by 0.4 percentage points from September to October, revealing that high oil and gas prices were continuing to drive up costs.
The S&P 500 index of leading US firms was down 0.9% by early afternoon on Wall Street. He stated there was a "double whammy" from higher energy prices and climbing global borrowing costs that was not being addressed.
Why inflation data matters for traders
Inflation figures decide how long central banks keep interest rates high. Hotter-than-expected readings usually lift bond yields and the local currency, while softer data raise hopes of rate cuts.
Price data feed straight into central-bank decisions, which makes them some of the most market-moving releases on the calendar for forex, bonds and stocks.
Market reaction and data
Crypto prices at the time of writing, from Binance spot data (2026-11-11 00:14 UTC):
| Asset | Last price (USDT) | 24h change | 24h high | 24h low |
|---|---|---|---|---|
| Bitcoin (BTC) | 73,672.01 | -2.17% | 75,303.13 | 72,727.27 |
| Ethereum (ETH) | 2,052.05 | -3.81% | 2,133.48 | 2,006.00 |
On the currency side, the latest ECB daily reference rates (2026-11-10) show USD/CAD 1.4136. These are reference fixes, not live quotes.
What to watch next for inflation data
Next in focus are the coming inflation releases, central-bank reaction to them and changes in market pricing for future rate moves.
Key scheduled releases on the economic calendar:
- GBP GDP m/m on Thu Nov 12, 07:00 UTC, forecast 0.0%, previous 0.1%
- USD Core PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.3%, previous 0.7%
- USD PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.4%, previous 1.3%
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FAQ
What is the latest inflation data news?
The Bank of England is risking higher borrowing costs for longer after a hesitant response to increasing inflation, according to leading thinktank.
Why do inflation numbers move markets?
Inflation data change expectations for central-bank interest rates, and rate expectations drive currencies, bond yields and stock valuations.
Where does this information come from?
This report is based on coverage from The Guardian Business, checked against market data where available. It is a summary for information only and not investment advice.
Risk warning: This article is for information only and is not investment advice. Trading forex, CFDs, stocks and crypto carries a high risk of losing money. Prices move fast – check live quotes before you trade.
