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I'm Katie Bulls, and I'm joined by Isabel Hardman and Kate Andrews.

Now, we've had some news today on inflation.

Kate, is not exactly going the right direction.

It's not going in the right direction.

After having fallen slightly below the Bank of England's target of 2%, inflation has been on the rise. And this

morning we learned that in November, inflation rose to 2.6% in the year leading up to November. So that

is above the bank's target. And the prediction is that it's going to go a bit higher,

probably close to 3% by spring next year.

It should be said that this has been forecast for quite some time.

Pretty much everybody was saying that inflation was going to go up slightly in the latter half

of the year and that that would continue into 2025 before the rate started to come down again.

It's also worth saying that this is

nothing like what the country experienced these past couple of years with price spirals and

inflation in the double digits and nobody at the moment is predicting that anything like that

is going to happen again. But of course, this is still having an impact. It still feels fairly

recent that wages started to outpace inflation after so much time of average wages falling below inflation.

Households are still feeling the pain of higher prices overall.

But I think one of the biggest losers from this news is, in fact, the government because Labor's budget has cost a lot more than originally predicted

because borrowing costs are up, investors want a better return for the money they're being

asked to give to the UK. If inflation continues to tick up, and that makes the Bank of England

...