UK Inflation Rises to 2.6% in November
Britain’s annual inflation rate rose to 2.6% in November from 2.3% in October, according to data from the Office for National Statistics published Wednesday.
The consumer prices index rose by 2.6% last month from 2.3% in October, driven by the rising cost of petrol, groceries and an increase in tobacco duty in the budget.
The reading from the Office for National Statistics, which matched City economists’ forecasts, showed the headline rate rising further above the Bank’s 2% target for a second consecutive month.
The latest reading is consistent with the consensus estimate. On a monthly basis, consumer prices were 0.1% higher, matching the market forecast, compared with the previous 0.6% rise.
The ONS chief economist, Grant Fitzner, said: “Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago. This was offset partially by air fares, which traditionally dip at this time of year, but had their largest drop in November since records began.”
Meanwhile, the UK’s annual core inflation rate came in at 3.5%, up from the prior 3.3% but below the market forecast of 3.6%. Month over month, core consumer prices were flat.
Also, the UK retail price index edged up 3.6% year over year in November, following a 3.4% growth in October, data from the Office for National Statistics showed Wednesday.
The latest reading is in line with the consensus estimate. On a monthly basis, the index rose 0.1%, against the prior 0.5% increase.
Elsewhere, producer input prices decreased 1.9% year over year in November, following the revised 2.4% decline in October, the Office for National Statistics said Wednesday. Meanwhile, producer output prices tumbled 0.6% during the period, against the revised 0.9% fall a month ago.
On a monthly basis, producer input prices recorded zero growth, compared with the 0.1% gain earlier and the expected 0.2% jump. Output prices edged up 0.3%, against the revised 0.1% decline previously and the consensus estimate of a 0.2% increase. Crude Oil Prices Rise over Positive Demand Expectations
