November's inflation rate was the highest in eight months and above the two-percent target rate set by the central bank.
LONDON, Dec. 18 (Xinhua) -- Britain's Consumer Prices Index (CPI) rose by 2.6 percent in the 12 months to November, up from 2.3 percent in October, according to data from the Office for National Statistics (ONS) released on Wednesday.
"Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago," ONS Chief Economist Grant Fitzner said. "This was partially offset by air fares, which traditionally dip at this time of year, but saw their largest drop in November since records began at the start of the century."
November's inflation rate was the highest in eight months and above the two-percent target rate set by the central bank, whose next interest rate meeting is scheduled for Thursday.
The ONS reported that the core CPI, excluding energy, food, alcohol and tobacco, rose by 3.5 percent in November, up from 3.3 percent in October. The CPI goods annual rate rose from negative 0.3 percent to positive 0.4 percent, while the CPI services annual rate remained unchanged at five percent.
Both readings are closely monitored by the Bank of England. With rising wage growth across the country, markets now expect the central bank to keep the interest rate on hold at 4.75 percent on Thursday.
The National Institute of Economic and Social Research forecasts headline inflation to rise further until early 2025 due to base effects from last year dropping out. "Moving forward, inflationary pressures stemming from the new budget, and global uncertainty surrounding the Trump presidency will likely keep interest rates higher for longer than previously anticipated," the institute said.
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