#labour-costs

#labour-costs

The decision reflects the MPC's view that, although inflation has peaked, further evidence is needed to confirm a sustained return to the 2% target. The latest ONS figures show CPI at 3.8% in September, broadly in line with BCC's forecast of 3.7%. The IMF also expects the UK to record the highest inflation in the G7 this year and next. So, the key question is: will UK inflation stay higher for longer, and will interest rates remain higher to control it?

Today's figures are a stark warning: retail jobs have plunged to a record low with 97,000 jobs lost over the last year, and almost 400,000 lost over the last decade. The rising cost of NICs and NLW, together costing the industry over £5 billion this year, are hitting retail employment hard. And worse could be yet to come, with the Employment Rights Bill having a "materially negative impact on employment" according to the OBR.