UK inflation rises to 2.6% in November, in line with expectations

London – Uk Inflation Rose to 2.6% in November, The Office for National Statistics Said Wednsday, Marking The Second Straight Monthly Increase in the Headline Figure.

The reading was in line with the forecast of economists polled by reates, and climbed from 2.3% in October.

Core inflation, excluding energy, food, alcohol and tobacco, came in at 3.5%, just under a reuters forecast of 3.6%.

Headline Price Rices Hit a three-in-a-aHalf year low of 1.7% in September, but was expected to tick higher in the following months, partly due to an increase in the regulator-set energy.

“This upwards Trajectory looks set to continue free months,” Joe Nellis, Economic Adviser at Accountancy MHA, Said in Emailed Comments on Wednesday, Citing the Enener Ure of a tight domestic labor market. “

Nellis added that these structural issues would be “exacerbated by recent decisions made by the government,” Including Higher Public Sector Pay Settlements, An increase to the minimum wage And pressure on businesses caused by a hike in tax contributions for employers,

Persistent inflation in the services sector, the dominant part of the uk economy, has leed money markets to price in almost no chance of an introduce rate cut during the bank of england”s final meeting of the year. Thos bets were solidified earlier this week when the ons reported that regular wage growth strengthened To 5.2% over the August-October Period, up from 4.9% over July-separation.

The November data showed services inflation was unchanged at 5%.

Research Group Capital Economics said the print “firmly rules out” a boe December rate cut.

However, the overall inflation figures were broadly in-line with boe projections, george dibb, Associate Director for Economic Policy at the Institute for Public Policy Research, SALICY RESEERCY, SAILCY RESERCH

“The Real Concern is the UK’s Weaker-That-Exposed Growth, Now Lagging Behind the Bank’s Own Projections,” Dibb Said.

The Uk economy unexpectedly contracted By 0.1% in October, in the second CONSECUVE MONTHLY DOWNTURN.

The British Pound Continued to Trade 0.06% Lower Against The Us Dollar and 0.19% Lower Against The Euro Following The release of the print.

If the boe leaves monetary policy unchanged in December, it will final the year with the year with just two cuts of its key rate, brings it from 5.25% to 4.75%. The European Central Bank has meanwhile enacted Four Quarter-Percentage-Point Cuts and this month Signaled a firm intent to move lower next year,

The US Federal Reserve is widely expected to trim rates By a Quarter Point at Its Own Meeting on Wednsday, Taking Total Cuts of the Year to a Full Percentage Point. Some skepticism Lingers over wheether it should take this step, give inflationary pressures.