UK Inflation Rate At More Than 2-Year High Of 1.2%


British consumer prices rose 1.2 percent in a year to November 2016, compared with a 0.9 percent growth in October and above market expectations of 1.1 percent gain. It was the highest inflation rate since October 2014, boosted by cost of clothing and footwear, recreation and culture and furnishings. The core index which excludes prices of energy, food, alcohol and tobacco advanced 1.4 percent on the year. On a monthly basis, consumer prices edged up 0.2 percent, in a line with market consensus.

Main upward pressure came from: clothing and footwear (+0.9 percent from -0.7 percent in October); furniture, household equipment and routine maintenance (+0.8 percent from +0.1 percent); recreation and culture (+0.7 percent from +0.2 percent); transportation (+2.5 percent from +2.3 percent).

Food and non-alcoholic beverages prices fell by a slower 2 percent (-2.4 percent in October) while housing and utilities rose less (+0.2 percent  from +0.3 percent in October)

On a monthly basis, consumer prices edged up 0.2 percent, following a 0.1 percent growth in October and in  a line with market expectations.

The core index which excludes prices of energy, food, alcohol and tobacco advanced 1.4 percent on the year, following 1.2 percent growth in the previous month. 

ONS | Yekaterina Guchshina | yekaterina@tradingeconomics.com
12/13/2016 9:53:32 AM