UK inflation rises to 2.6% in November

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UK inflation accelerated to 2.6 percent in November, in line with analysts’ expectations, boosting expectations that the Bank of England will keep interest rates steady at its meeting on Thursday.

The rise in the CPI was higher than the 2.3 percent recorded in October.

The ONS data comes as the Bank of England’s monetary policy committee meets this week to set interest rates amid signs the economy is stagnating.

GDP has contracted for two straight months, while business surveys point to weak confidence and reduced hiring intentions. But pick-up is in the UK Wage growth Which led to dwindling hopes for an interest rate cut this week.

Services inflation, which the central bank closely monitors as a measure of underlying domestic price pressures, reached 5 percent in November, matching October’s figure but below analysts’ expectations of 5.1 percent.

The central bank cut its key interest rate to 4.75 percent in two quarter-point moves this year. Governor Andrew Bailey said the Bank of England would continue to ease policy gradually.

After the data was released, the British pound fell by 0.1 percent to $1.269.

This is a developing story