Analysis from the Office for National Statistics (ONS) and major financial news outlets.

UK Inflation Rises to 2.6% in November, Highest Since March; Core Inflation Hits 3.5%

Dec 18, 2024, 07:05 AM

The UK's Consumer Prices Index (CPI) inflation rate rose for the second consecutive month in November, reaching 2.6%, up from 2.3% in October, according to the Office for National Statistics (ONS). This marks the highest inflation rate since March and exceeds the Bank of England's 2% target. The increase was driven by rising petrol prices and clothing costs. The CPI rose by 0.1% month-on-month in November. Core inflation, which excludes volatile items such as energy and food, rose to 3.5% from 3.3%, while services inflation remained steady at 5%. The Retail Prices Index (RPI) inflation also increased to 3.6% from 3.4%. Economists had expected the CPI figure to rise to around 2.6% or 2.7%. The rise in inflation may influence the Bank of England's decision regarding interest rates, with expectations solidifying that it will keep rates unchanged at its final meeting of the year.