UK inflation falls from 41-year highs as fuel price hikes abate. In November, the UK consumer price index marks +10.7% from +10.9% expected and +11.1% previously. Thus the ONS according to which the figure on a monthly basis marks +0.4% on the previous +2%. The core figure goes from the previous +6.5% to the current +6.3%. The largest contributions to the increase came from “housing and household services (mainly from electricity, gas and other fuels), and from food and non-alcoholic beverages”. The main downward contributions during the month came from “transportation, in particular from automotive fuels, while the increase in the prices of restaurants, cafes and pubs gave the greatest contribution to the increase, partially offset”.
The Bank of England is due to announce its next monetary policy move tomorrow and is expected to raise interest rates by 50 basis points as it juggles skyrocketing inflation and an economy that policymakers say is in the throes of already in the longest recession on record.