UK inflation climbed to 2.6% in November, fresh data from the Office for National Statistics (ONS) revealed, exceeding both the Bank of England’s forecast of 2.4% and the 2.3% recorded in October.
The surprise jump marks the second consecutive monthly increase, pushing the headline figure even further above the central bank’s 2% target.
The acceleration in price growth has reinforced expectations that the Bank of England’s monetary policy committee will vote decisively to hold interest rates at 4.75% on Thursday, likely opting for an 8-1 majority in favour of no change. Policymakers have recently emphasised caution as they weigh persistent inflationary pressures against a backdrop of sluggish economic growth.
Services inflation, closely monitored by the Bank as a gauge of underlying price trends, remained stable at 5%. Meanwhile, core inflation—which strips out volatile food and energy costs—rose from 3.3% to 3.5%. In addition, wage growth reached 5.2%, further complicating the inflation outlook and stoking concerns that underlying cost pressures may become entrenched.
The ONS attributed last month’s overall increase largely to rising petrol costs. That upward pressure, however, was partially offset by a record drop in air fares. Still, the latest figures pose a challenge for Chancellor Rachel Reeves, who this month has faced a series of discouraging economic indicators. The ONS recently reported a 0.1% contraction in October’s GDP, and private sector hiring has slumped at a pace unmatched since the financial crisis, excluding the pandemic.
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