Rise in UK inflation 'unwelcome' ahead of BoE interest rate meeting

BoE MPC meeting on Thursday

Sterling has dipped in response to the UK inflation rate coming in at an eight month high, putting pressure on the Bank of England as it prepares to make its final rate call of the year tomorrow (19 December).

According to data published by Office for National Statistics today (18 December), the annual rate of the UK Consumer Prices index – which excludes energy, food, alcohol and tobacco – hit 2.6% in November, up from 2.3% a month before. The data was slightly below FactSet's consensus, which expected that figure to stand at 2.7% last month. UK economy unexpectedly shrinks by 0.1% in October sparking 'cause for concern' On a monthly basis, CPI rose by 0.1% in November, compared to a 0.2% fall recorded the same month last year. The latest inflation stats weakened the pound as markets...