UK November Inflation Rate Highest Since Early 2012

Consumer prices in the United Kingdom rose by 3.1 percent in the year to November 2017, following a 3 percent gain in the previous month and beating market expectations of 3 percent. It was the highest inflation rate since March 2012, mainly due to rising prices of transport, leisure activities, restaurants and hotels, housing and food.

Year-on-year, prices rose at a faster pace for: transport (4.5 percent from 4 percent in October), in particular fuels and lubricants (3.5 percent from 3.4 percent) and purchase of new cars (3.8 percent from 3.2 percent); recreation and culture (3.1 percent from 2.8 percent); restaurants and hotels (3.2 percent from 3.1 percent); housing, water, electricity, gas and other fuels (2.4 percent from 2.3 percent); food and non-alcoholic beverages (4.1 percent from 4 percent); and alcoholic beverages and tobacco (4.5 percent from 4.3 percent). Meanwhile, inflation slowed for clothing and footwear (3 percent from 3.2 percent in October); furniture, household equipment and maintenance (2.8 percent from 3.1 percent); and miscellaneous goods and services (0.6 percent from 0.9 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) rose by 2.8 percent in November, the same as in October.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, stood at 2.7 percent in November, unchanged from the previous month and in line with market consensus. The rate remained at the highest level since December 2011.

On a monthly basis, consumer prices rose 0.3 percent after increasing 0.1 percent in October and above market forecast of 0.2 percent. Prices rose sharply for clothing and footwear (1.2 percent), recreation and culture (0.7 percent) and food and non-alcoholic beverages (0.5 percent).

UK November Inflation Rate Highest Since Early 2012

ONS | Joana Ferreira |
12/12/2017 9:50:14 AM