Consumer price inflation accelerated to its highest level since April last month, fresh data from the Office for National Statistics shows.
The Consumer Price Index rose to 2.3 per cent in October from 1.7 per cent in September, higher than the 2.2 per cent forecast by analysts and marking the largest month-on-month increase in more than two years.
The FTSE 100 is up 0.1 per cent in early trading. Among the companies with reports and trading updates today are Dunelm, Sage, Crest Nicholson, Severn Trent and Hornby. Read the Wednesday 20 November Business Live blog below.
Dunelm buys Ireland’s Homefocus for an undisclosed sum
Dunelm has entered the Irish market after acquiring soft furnishing retailer Homefocus Group for an undisclosed sum.
Homefocus, which trades under the Home Focus at Hickeys’ brand, has 13 stores across Ireland and a website providing home delivery and click-and-reserve options for shoppers.
Crest Nicholson sees profit dip amid margin pressure
Homebuilder Crest Nicholson said on Wednesday it expects annual profit to be at the lower end of its previous forecast range, partly hurt by the higher proportion of low-margin affordable homes delivered in the year.
The company, which has struggled with operational problems and low operating margins, forecast adjusted pre-tax profit to be at the bottom end of its £22million to £29million outlook range guided previously.
Santander UK profits plunge after £295m motor finance hit
Banking giant Santander UK has revealed profits plummeted in its third quarter as it took a £295 million hit following a major court decision on car finance commission.
The high street lender reported pre-tax profits of £143 million for the three months to the end of September, down 65% on the £413 million notched in the previous three months.
The group said it put aside £295 million as a provision to cover potential payouts as well as legal costs.
What Trump means for investors and how to back AI: Blue Whale manager
Donald Trump’s stint as President-elect has started with the kind of bang that you’d expect.
The US stock market has rallied, bitcoin and crypto have soared and investors have rushed to buy tech stocks, with the Trump-Musk bromance fuelling a 20 per cent surge in Tesla shares since election day.
Dunelm agrees to buy soft furnishings retailer Home Focus
Dunelm has struck a deal to acquire Irish soft furnishings retailer Home Focus.
Nick Wilkinson, CEO of Dunelm, said: “In Home Focus we have found a high-quality and complementary business, with a shared heritage in home textiles and strong values which stem from family ownership.
We’ve really enjoyed getting to know the team and look forward to welcoming them to the Dunelm family as we work together to further develop and invest in their specialist home proposition.
“We see a clear opportunity to introduce more choice and value into the offer which Home Focus has built for its customers.”
UK inflation rate rises to 2.3%
Isaac Stell, investment manager at Wealth Club, comments on the latest UK inflation figures:
Headline inflation reaccelerated in October to the highest rate since April 2024. The reacceleration can largely be attributed to increases in energy prices following the 10% rise in the energy price cap which came into force in October.
This rise will likely see an additional £149 added to the average annual household bill according to Ofgem.
The surprising strength of the latest inflation figures gives the Bank of England a conundrum.
With economic growth in the UK stalling, rate cuts would seem like the appropriate medicine, however, cutting rates into inflationary strength wouldn’t usually be what the economic doctors order.
With inflation close to target and one off’s causing the latest spike up, the BoE should feel confident about reducing rates by 0.25% in December, helping to ease the burden on consumers facing a rise in their heating bills as the winter weather begins to set in.”
Foreign swoop on Royal Mail ‘to be approved
The takeover of Royal Mail by a Czech billionaire looks set to be approved by ministers.
It places the postal service into foreign hands for the first time in its 508-year history.
Lenders face £30bn compensation bill to settle motor finance scandal
Lenders could be hit with a £30billion bill to cover compensation costs related to the motor finance scandal, ratings agency Moody’s has said.
A court ruling recently found that banks must fully inform customers about the existence and size of commissions when selling car loans.
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