UK inflation rate rises to 3.1%

Latest news

    MoneyImage copyright PA

    Inflation rose to 3.1% in November, the highest in nearly six years, as the squeeze on households continued.

    The Office for National Statistics (ONS) said that airfares and computer games contributed to the increase.

    Mark Carney, the governor of the Bank of England, will now have to write a letter to Chancellor Philip Hammond explaining how the Bank intends to bring inflation back to its 2% target.

    The most recent data shows that average weekly wages are growing at just 2.2%.

    In November, the Bank of England raised the interest rate for the first time in more than a decade from 0.25% to 0.5%.

    However, it is not expected to announce a further increase when it publishes the results of the Monetary Policy Committee’s two-day meeting on Thursday.

    Mr Carney had said that he expected inflation to peak in October or November.

    Lucy O’Carroll, chief economist at Aberdeen Standard Investments, said: “It’s quite possible that inflation is now close to its peak. But some of the latest surveys suggest that service sector costs and prices are rising. Given how dominant services are in the economy, this could feed through to inflation overall.

    View the original article: http://www.bbc.co.uk/news/business-42320052

    “That means that further interest rate rises are definitely not off the table.”

    In the same category are

    Why more young people are using Crimestoppers Image copyright Crimestoppers Image caption James Atherley was jailed for a minimum term of 26 yearsAnonymous crime reporting service Crimestoppers is...
    Universal credit: Should the benefit be paid monthly or weekly? Image copyright Getty ImagesFormer government adviser Philippa Stroud has told the BBC universal credit was designed around monthly payments because t...
    The paedophile hunter turned prey Image copyright Kellie Howarth Image caption Trolls sent hoax emails to police claiming Kellie Howarth was sexually abusing childrenKellie Howarth use...
    In pictures: Army Photographic Competition 2018 Image copyright Cpl Tom Evans / MODA stunning photo of a helicopter hovering above a soldier has been named best overall image in the Army Photographi...
    Add oil: Encouraging Chinese phrase enters English dictionary "Jia you" is a Mandarin Chinese expression used in cheers at sporting events and rallies or to encourage someone. In Cantonese, it's "ga yau". Now the...
    My cheating boyfriend gave me HIV – here’s how I got justice Image copyright Diane ReeveDiane Reeve didn't expect to find love again after her 18-year-long marriage fell apart. But in 2002, at the age of 50, she...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.