4 Things You Need To Know (12/9/17)

Welcome to our daily update, where we summarise the key talking points from the last 24 hours.

1. UK Inflation

The UK inflation rate climbed to 2.9% in August, up from 2.6% in July, the Office for National Statistics has reported.

Inflation in the UK is measured by the Consumer Prices Index, and the climb marks the joint highest level in more than half a decade. Contributing factors included the fall of sterling, and increases in fuel prices.

The rise in inflation is likely to put a further squeeze on UK households, with products getting more expensive while wage growth remains slow. The inflation rate could also mean a negative impact on your savings, with typical Cash ISAs advertising interest rates at 1%.

2. Public sector pay cap

Police and prison officers will be allowed pay rises in excess of the 1% public sector pay cap. The government approved a 1.7% rise for the prison service, while the police will get a 1% rise and 1% bonus for the year. This will be paid from existing budgets.

The government has said it recognises the need for more flexibility.

3. Autumn budget

The next budget will be held on November 22, Chancellor Philip Hammond has said.

Mr Hammond previously delivered a budget in the Spring, and this will be his first budget since the Conservative majority was lost in the General Election. Mr Hammond has said the Budget will “set out our thinking on how to keep the economy strong and resilient and fair”

4. UK weather warning

Winds of up to 70mph and heavy rainfalls are forecast for this evening, with Storm Aileen expected to cause disruption in midland and southern areas of the UK.

Yellow and amber warnings are in effect, with Aileen being the first major storm of the autumn season.

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