Live updates

Families look beyond figures to their shopping baskets

At the sharp end of all the facts and figures from the Bank of England families are scrutinising their shopping baskets, and the businesses plying their trade week in, week out.

ITV News consumer editor Chris Choi reports from Sheffield - were people are just as anxious to know what the future holds for the economy.

Osborne tweets support for action on low inflation

George Osborne has said he agrees with Bank of England governor Mark Carney's positive assessment of the state of the country's economy.

The Chancellor took to Twitter to voice his support for "whatever action is needed" to bump inflation back up to target, amid predictions it could drop below zero in the coming months.

Advertisement

Savers and borrowers 'should prepare for interest rate rise'

Savers and borrowers should be prepared for a rise in interest rates, despite forecasts of a dip in inflation, Bank of England leaders have said.

In response to a question from ITV News economics editor Richard Edgar, the governor said:

Most likely the next move in monetary policy is an increase in interest rates.

We expect these ajustments to be limited and at a gradual pace, but the message is clear - in order to achieve our objective, we are going to look through this one-time adjustment, which is in the end going to be good news for British households.,,, abd ensure that inflation comes back to target in a timely fashion.

But that is consistent with some rate increases over the forecast horizon, in our judgement.

– Mark Carney, Bank of England governor

Carney: Falling food and energy prices explain low inflation

The Bank of England's governor, Mark Carney, has said that falling food and energy prices over the past few months is responsible for around two-thirds of the difference between current inflation level and the target level.

Stating that the UK is not currently in deflation, Mr Carney added that the falling costs of fuel - with oil prices having halved over the past six months - is also expected to boost take-home pay for workers across the country.

ITV News economics editor Richard Edgar is tweeting from the announcement:

Advertisement

Inflation expected to stay at five-year low of 1.2%

Inflation is expected to have remained at a five-year low of 1.2%. Credit: Anthony Devlin/PA Wire

Inflation is expected to have remained at a five-year low when official figures are published today, as the prospect that it will head even lower pushes forecasts of an interest rate hike as far back as 2016.

The measure of Consumer Price Index (CPI) inflation for October is predicted to have stayed unchanged from the previous month at 1.2%.

The low inflation environment coupled with warnings of gloom about the world economy has led economists to push back expectations for when the Bank will raise interest rates from 0.5%, where they have been held since 2009.

Load more updates