The surge in higher UK inflation in November is likely to continue to put pressure on the Bank of England (BOE) to make a decision at a policy meeting this week.
The UK’s annual consumer price index (CPI) rose to 5.1% last month, much higher than the previously recorded reading of 4.2%. This is the highest figure ever recorded since September 2011.
Meanwhile, core inflation rose to 4.0% from 3.4% recorded in October. On a monthly basis, UK consumer prices rose 0.7% against expectations for a 0.4% increase.
Among the main contributors to the surge were increases in transportation costs, particularly from fuel and used cars, as well as housing and household services.
Following this rising inflation figure, it is seen to add pressure on BOE policymakers who are expected to keep interest rates unchanged at their meeting on Thursday.
This is because, they need to take into account the impact of the latest threat of the Omicron coronavirus variant which is growing in the UK at this point thus forcing Prime Minister Boris Johnson to announce tighter sanctions measures.
The initial reaction of the pound following the publication of this data showed that it jumped higher to 1.3250 against the USD at the beginning of the European session.
