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UK inflation spiked 2.6% in November up
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from 2.3% in October according to new
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data from the office for National
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statistics and core inflation which
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strips out volatile Commodities like
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food and energy also Rose to 3.5% that's
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up from 3.3% in October but slightly
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below Market expectations of 3.6% the
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spike in inflation comes ahead of the
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bank of England's meeting tomorrow to
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decide interest rates and has raised
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questions about the health of the UK
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economy let's break it down falling
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inflation earlier this year had given
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members of the bank of England's
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monetary policy committee confidence to
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lower interest rates in August and
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November the headline rate of inflation
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fell to 1.7% in September but has since
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been driven Higher by Rising energy
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costs Services inflation which has been
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closely monitored by the bank of Inland
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for signs of domestic price pressure has
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also remained elevated however it wasn't
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all bad news for the bank as today's
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figures show the services inflation
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remained steady from last month of 5%
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versus an uptake of 5.1% that had been
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expected by the market after higher than
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the expected wage data yesterday markets
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have ruled out hope of a cut to interest
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rates tomorrow meaning that 2024 will
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end with the bank of England having
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slash rates just twice markets agree
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that today's figures combined with
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higher than expected wage growth
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yesterday mean that a cut is off the
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table so what's behind November's
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inflation Spike and what does it mean
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for the economy coming into the new year
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the latest uptick in inflation was
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largely driven by Price Falls in fuel
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and underlying Goods prices in November
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2023 which dropped out of the annual
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ized calculation meanwhile higher fuel
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prices combined with price increases in
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clothing secondhand cars and Recreation
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also helped to drive inflation up one of
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the worst offenders has been the price
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of renting which has risen at more than
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7% annually and .8% just in the last
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month that's nearly 3 percentage points
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more than forecasted by deuts Bank
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looking to the New Year an inflation is
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expected to rise further with the UK
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taking a more gradual approach to easing
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interest rates than other developed
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Central Banks here at CM we'd like to
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know what has become more expensive for
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you over the past month are you
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concerned for the economy coming into
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2025 let us know in the comments and
