UK inflation hits two year high in November
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Inflation in Britain has risen again. Last month consumer prices were 1.2 percent higher than November last year.
We expect inflation could hit three percent next year against a backdrop of rising unemployment and weaker wage growth
CEO of Retail Economics
That was the highest rate in more than two years and up from 0.9 percent in October.
The increase came from more expensive clothing and technology goods such as computers after the pound fell in value following June’s referendum vote for the UK to leave the European Union.
Another factor was higher energy costs.
1.2% rise in #CPI in the year to November, up from 0.9% in October https://t.co/C5Ezi47ufx#inflation
— ONS (@ONS) December 13, 2016
Wholesale prices rose an annual 2.3 percent in November and experts said that pointed to sharply higher inflation next year.
“We expect inflation could hit three percent next year against a backdrop of rising unemployment and weaker wage growth,” said Richard Lim, chief executive of consultancy Retail Economics.
The Bank of England forecast last month that inflation would surge to about 2.8 percent by mid-2018, as sterling’s plunge after Britain’s vote to leave the EU pushes up the cost of imports and squeezes living standards and household spending.
Significant upward price pressure building across #UK firms' supply chains. We expect inflation to rise abve 3% in H2 2017 from 1.2% in Nov pic.twitter.com/LGvYsy7Rdz
— Danielle Haralambous (@DHaralambous) December 13, 2016
British inflation has been below the Bank of England’s 2 percent target for nearly three years and last year it was zero, the lowest level since comparable records began in 1950.