The rise in inflation from 1.7% to 2.3% in October has dashed hopes of another interest rate cut by the Bank of England. The increase in household energy bills and the upcoming rise in the price cap are contributing to higher living costs. Inflation has a direct impact on borrowing costs, including mortgages. The Bank of England typically raises interest rates to control inflation and cuts rates when inflation is no longer a threat. The slower-than-expected reductions in mortgage rates have kept them high. The Chancellor's Budget and global events also pose risks to inflation and borrowing costs.