UK inflation pushes higher to reach 2.6%

(Sharecast News) - UK inflation reached 2.6% in November, official data showed on Wednesday, the second consecutive monthly rise. According to the Office for National Statistics, consumer price inflation rose in the 12 months to November to 2.6%, up from 2.3% in October.

Largely in line with expectations, it was the highest print since March.

The ONS said the prices of motor fuel and clothing had driven the increase, although that had been partially offset by a bigger-than-normal fall in air fares.

Although fares traditionally dip around this time of year, the decline was the largest drop in November since records began.

On a monthly basis, CPI rose by 0.1%, compared with a fall of 0.2% a year previously.

Core CPI, which strips out the more volatile elements of energy, food alcohol and tobacco, rose by 3.5% in the 12 months to November, up from 3.3% in October.

Including owner occupiers' housing costs, CPIH was 3.5%, against the previous month's 3.2% rise.

Factory gate prices, meanwhile, fell 0.6% in November, compared to October's revised 0.9% decline.

The Bank of England meets tomorrow to make its latest decision on interest rates and is widely expected to keep the cost of borrowing on hold.

The Monetary Policy Committee has trimmed rates twice this year, but remains hesitant about sticky services inflation.

The ONS said the CPI services annual rate was unchanged in November at 5.0%.