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UK inflation hits 10-year high ahead of key Bank of England meeting

Shoppers wearing face masks walk through the rain on Oxford Street in London on June 18, 2020, as some non-essential retailers reopen following the coronavirus shutdown.

Tolga Akmen photo / AFP / Getty

LONDON – UK inflation rose to 10-year high in November as consumer prices continued to soar ahead Bank of Englandterrible monetary policy meeting on Thursday.

The consumer price index rose 5.1% in the 12 months to November, up from 4.2% in October, which is itself the biggest tilt in a decade and more than double the central bank’s target.

Economists polled by Reuters had predicted a reading of 4.7% for November, and the Bank of England had predicted that inflation would hit 5% in spring 2022 before adjusting towards the target. spend 2% by the end of 2023.

On a monthly basis, UK inflation rose 0.7 per cent in November from October, above a Reuters poll of 0.4 per cent gain.

Core CPI, which excludes volatile energy, food, alcohol and tobacco prices, rose 4% year-on-year, versus Reuters forecasts of 3.7% and 0.5% month-on-month respectively. ahead of 0.3%.

The Bank of England’s Monetary Policy Committee meets on Thursday to decide whether to tighten monetary policy, with inflation rising and Labor market remains strong, but the rapid spread of the Covid-19 omicron variant has caused renewed uncertainty about the near-term economic recovery.

The MPC defies market expectations in November by voting 7-2 to keep interest rates at a historic low of 0.1%, but analysts are divided on whether it will trigger a rate hike on Thursday due to the emergence of omicrons .

Richard Carter, head of fixed-rate research at Quilter Cheviot.

“However, the Bank of England may decide that assertiveness is the better part of bravery and instead choose to wait until next year given the current uncertainty surrounding the impact of the variant. Omicron to the economy, along with the risk that further restrictions may be needed to be introduced shortly.”

https://www.cnbc.com/2021/12/15/uk-inflation-rose-by-5point1percent-in-the-12-months-to-november-up-from-4point2percent-in-october.html UK inflation hits 10-year high ahead of key Bank of England meeting

Sunbiz

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