Rise in UK inflation 'unwelcome' ahead of BoE interest rate meeting

Bank of England MPC meeting due on Thursday

Sorin Dojan
clock • 3 min read

Sterling has dipped in response to the UK inflation rate coming in at an eight month high, putting pressure on the Bank of England (BoE)as it prepares to make its final rate call of the year tomorrow (19 December).

According to data published by Office for National Statistics today (18 December), the annual rate of the UK Consumer Prices index (CPI) – which excludes energy, food, alcohol and tobacco – hit 2.6% in November, up from 2.3% a month before. The data was slightly below FactSet's consensus, which expected that figure to stand at 2.7% last month. On a monthly basis, CPI rose by 0.1% in November, compared to a 0.2% fall recorded the same month last year. The latest inflation stats weakened the pound as markets opened, giving a boost to the FTSE 100 with the blue-chip index up 0.2%, acc...

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