we start here in the uk because in 90 minutes time, we ll find out if inflation is continuting to fall. the rate at which prices are rising fell to 4.6% in the year to october, down from 6.7% the month before. that sharp fall was due to cheaper energy prices and declines in oil and gas prices might bring the headline rate of inflation even lower in november, with economists estimating 4.3%. in a bid to curb inflation, the bank of england has increased interest rates to 5.15%. some of you know that only too well. live now to kallum pickering, senior economist at berenberg. good morning to you, it s been a while. give us your take on inflation today, will go in the direction we wanted to? yes, it robabl direction we wanted to? yes, it probably will direction we wanted to? yes, it probably will fall direction we wanted to? yes, it probably will fall as direction we wanted to? yes, it probably will fall as you - probably will fall as you mention, a5 seem to be the estimate
expensive than a year ago. so, now all focus will shift to the bank of england and the debate over when it will start cutting interest rates. at the moment, they re at 5.25% and a quarter after successive rises to keep a lid on inflation. tell us what it means about the figures coming down and why. the market figures coming down and why. tue: market consensus figures coming down and why. tte: market consensus was 4.3, and we got 3.9. a very nice surprise. a big contributor to that was transport, fuel prices down 10.6% over a year ago, so that was a significant contributing factor. as you mentioned, food prices, yes they are moderating but we re still seeing higher food moderating but we re still seeing higherfood prices coming through. the office of national statistic have said food prices were 27% higher than they were a few years ago. there is still work for the bank of england to do. they are above 30% target. with inflation coming down faster than anticipated, it will mak
is also setting up a taskforce to find alternate routes, while ikea is warning of potential product shortages. ryan petersen from the supply chain management company flexport told me more about how the disruption is already impacting businesses. it s just getting started. over the weekend and through today we have had all ten of the top container shipping lines in the world, representing about 95% capacity, have begun to divert vessels to avoid sailing through the red sea and to go around the tip of africa, as you said. it takes about 25% longer to go that way from asia to europe and, well, 25% reduction in supply of shipping, we re going to see huge delays, obviously, but also big price increases because, well, it s a supply and demand and if the supply comes down 25%, one thing we have learned in the last few years is a small destruction and supply can lead to a huge swing in price. indeed. we re seeing an impact on oil prices as well. the united states planning to form an
appliance company electrolux is setting up a task force to find alternative routes while ikea is warning of potential product shortages. ryan petersen from the supply chain management company flexport told me more about how the disruption is already impacting business. it s just getting started, but over the weekend and through today, we ve had all ten of the top container shipping lines in the world represented about 95% capacity have begun delivered vessels to avoid salem to the red sea and to go around the tip of africa, as you said. it takes about 25% longer to go that way, from asia to europe, and it went reduction in the supply of shipping, we are going to see huge delays, obviously, but also big price increases, because its supply and demand, and if the supply comes down .5%, one thing we ve learned last few years is a small disruption in supply can lead to a huge swing in price. indeed, we are seeing an impact on oil prices as well there. the united states planning to
the southern tip of africa. appliance company electrolux is also setting up a taskforce to find alternate routes, while ikea is warning of potential product shortages. ryan petersen from the supply chain management company flexport told me more about how the disruption is already impacting businesses. it s just getting started. over the weekend and through today we have had all ten of the top container shipping lines in the world, representing about 95% capacity, have begun to divert vessels to avoid sailing through the red sea and to go around the tip of africa, as you said. it takes about 25% longer to go that way from asia to europe and, well, 25% reduction in supply of shipping, we re going to see huge delays, obviously, but also big price increases because, well, it s a supply and demand and if the supply comes down 25%, one thing we have learned in the last few years is a small destruction and supply can lead to a huge swing in price. are small disruption in supply c