Mumbai, Oct. 27 -- UK shop price inflation accelerated to 2.1% year-on-year in October from 1.4% in September, as retailers began passing on higher energy and food ingredient costs linked to the Middle East conflict. Food inflation climbed to 2.9% from 2.5%, while non-food inflation more than doubled to 1.7% from 0.8%. The renewed price pressures add to the challenges facing Finance Minister John Healey ahead of Wednesday's budget, while strengthening expectations of further monetary tightening. The Bank of England is expected to raise interest rates from 3.75% to 4% next week, with persistent inflation potentially increasing the likelihood of another hike in December or early next year.
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