Home News UK inflation rises AGAIN ahead of Bank of England rate decision

UK inflation rises AGAIN ahead of Bank of England rate decision

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UK inflation rises AGAIN ahead of Bank of England rate decision

UK inflation spiked to 2.6 per cent ahead of the Bank of England’s meeting to decide interest rates later this week

Year-on-year inflation matched expectations of 2.6 per cent in November, up from 2.3 per cent in October, data from the Office for National Statistics revealed.

Meanwhile, core inflation, which strips out volatile commodities like food and energy, rose to 3.5 per cent from 3.3 per cent in October. However, this was slightly below the expectations of 3.6 per cent.

 

Falling inflation earlier this year had given members of the BoE’s Monetary Policy Committee (MPC) confidence to lower interest rates in August and November.

The headline rate fell to 1.7 per cent in September but has since been driven higher by rising energy costs. Services inflation, which is being closely monitored by the Bank of England for signs of domestic price pressures, has also remained elevated.

However, today’s figures showed that services inflation remained steady from last month at five per cent, versus the 5.1 per cent figure expected by the market.

READ ALSO:  UK inflation dips, easing some pressure on government

Despite the numbers, the Bank of England is still expected to keep interest rates on hold at its meeting later this week, and markets are still split over whether it will cut rates at its meeting in February.

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