UK Annual Inflation Hit the Lowest Level Since March 2017
Growth of the UK consumer prices slowed in November, hitting its lowest level in 21-months. Office for National Statistics (ONS) reported, that annual rate of the UK consumer price index (CPI) rose 2.3% last month, after a 2.4% increase in October. The Bank of England had forecast a CPI rate of 2.5% for both October and November.
Month-over-month, consumer price inflation increased by 0.2% in November, in line with forecasts and slightly higher than the 0.1% growth seen in October.
Meanwhile, core CPI, which excludes food, energy, alcohol, and tobacco costs, increased by 1.8% in November, compared to 1.9% a month earlier. That reading was also in line with forecasts.
Office for National Statistics says downward pressure came from the cost of auto fuel, which fell 1.1% compared with a 1.6% increase in November last year.
The UK central bank is expected to keep its benchmark rate at 0.75% this week and traders are ruling out the possibility of a hike before Britain leaves the European Union on March 29.