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World

UK inflation falls, BoE warns of rises ahead

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Opening sequence

World

UK inflation falls, BoE warns of rises ahead

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16:51
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COMING UP:UK inflation falls, BoE warns of rises ahead

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Transcript

00:00:01
>> British inflation saw a surprise fall in October. But the Bank of England's advice on it, don't be fooled. Governor Mark Carney warning of higher prices ahead, thanks to Sterling's Brexit slump. According to Reuters Economics Correspondent Andy Bruce, the tell tale signs can already be seen at the factory gate.
00:00:21
>> Inflation fell slightly because of clothes prices. And also university tuition fees, which didn't go up this year as much as they did in the previous years. So that's the big reason why inflation disappointed, compared to economist's expectations for small rise this month. But as Bank of England Governor Mark Carney made it clear earlier today, inflation is likely to rise very strongly next year as the plunge in the pound since June's Brexit vote starts to feed through into prices in the high street.
00:00:51
There's already really big signs that it's pushing up prices in factories. So that's both prices for goods made by factories and also the prices that factories have to pay for energy and raw materials.>> Even before the session began there was sobering news. Britain's government discovered to have no plan, it's claimed, for dealing with Brexit.
00:01:15
In the event, lawmakers began more interested in Mark Carney himself, and the recent speculation over whether he'd stay on at the Bank of England.>> I will leave June 3, 2019.>> Others may be planning to leave too. Global banks have contingency plans in the pipelines, says Carney.
00:01:30
Though it's a matter of when, not if, should a so-called hard Brexit look likely.