The Bank of England says that the UK inflation rate is expected to reach around 5% by the middle of next year. The bank expects inflation to decline thereafter as the effect of rising energy prices on annual inflation rates fades, and the effect of the restrictive monetary policy continues to curb inflation, according to the monetary policy statement. The bank adds that the inflation rate in Great Britain rose to 3.5% in September. The bank notes that while the direct effects of the increase in energy prices are clear, and will continue to affect the energy bills of companies and households, the evidence of their indirect effects on prices and wages is still limited, according to the bank's statement.

The Bank of England says that the UK inflation rate is expected to reach around 5% by the middle of next year. The bank expects inflation to decline thereafter as the effect of rising energy prices on annual inflation rates fades, and the effect of the restrictive monetary policy continues to curb inflation, according to the monetary policy statement. The bank adds that the inflation rate in Great Britain rose to 3.5% in September. The bank notes that while the direct effects of the increase in energy prices are clear, and will continue to affect the energy bills of companies and households, the evidence of their indirect effects on prices and wages is still limited, according to the bank's statement.