Banks face rising bad debt as mortgage costs rise by £52bn – live updates
Inflation in the UK has returned to double digits, with the latest data from the ONS showing consumer prices rose 10.1% in the year to September. This is a slight increase from August when it was 9.9% and just above the forecast of 10%.
On a monthly basis, consumer prices rose by 0.5 pc in September, the same as in August. Food and non-alcoholic beverages were the main drivers of inflation, rising 14.5% from 13.1% in August. This will increase pressure on households at a time when bills and mortgage costs are already rising rapidly.
It comes as the government refuses to rule out the removal of the triple lock, which dictates that pensions rise at the height of inflation, average incomes or 2.5%. The September inflation figure is crucial as it is used to determine increases in state pensions from next April. The abandonment of this policy could lead to a significant drop in pensions in real terms for millions of pensioners.
5 things to start your day
1) Netflix avoids the inflation crisis by adding 2 million viewers Paid subscribers using the service rose by 2.4 million after six months of decline
2) Union leaders threaten winter with mass strikes ‘to end wage crisis’ Rail union boss demands ‘uprising’ as Bonfire Night strikes announced
3) Lists of benefit claimants to be shared with energy companies as part of proposal to support vulnerable people The tiered pricing mechanism was also mentioned in early discussions between Whitehall and the industry
4) Tax raid on green energy risks giving EU a head start on offshore wind Maintaining the UK’s leadership in renewables is not a given – others are hot on our heels
5) Britain is ready for an almighty squeeze worse than 1976 The challenges of the 1970s – loss of international competitiveness, deplorable industrial relations and runaway inflation – seem relatively small compared to what we face today.
What happened overnight
Asian stocks were mostly higher on Wednesday, with US corporate earnings helping sentiment.
MSCI’s broadest index of Asia-Pacific stocks outside Japan climbed 0.2%, but further gains were capped by slight declines in Chinese stocks. Mainland Chinese bluechips lost 0.2pc, while Hong Kong’s Hang Sang index fell 0.1pc.
Meanwhile, the Japanese Nikkei advanced 0.4pc, Australian resource-rich stocks gained 0.4pc and South Korea rebounded 0.5pc.
US futures on the S&P 500 rose 0.8% and futures on the Nasdaq jumped 1.3%.