Investing.com – Consumer price inflation in the U.K. eased in line with expectations in November, declining for the second consecutive month, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation decelerated to 4.8% in November from 5.0% in October, broadly in line with market expectations.
U.K. consumer prices have eased for two consecutive months since hitting a record-high 5.2% in September.
Month-over-month, consumer price inflation rose 0.2%, matching analysts’ forecasts.
The rate of inflation remains more than double above the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by a seasonally adjusted 3.2% in November, slowing from 3.4% in October. Analysts had expected core CPI to rise 3.3%.
The retail price index rose 5.2% last month, after rising 5.4% in October, above expectations for a 5.1% increase.
The ONS said the biggest downward pressure on CPI came from food, transport, clothing and furniture costs, while alcohol and tobacco prices were the biggest upward contributors.
Following the release of that data, the pound erased modest gains against the U.S. dollar, with GBP/USD easing down 0.01% to trade at 1.5583.
Meanwhile, European stock markets remained mixed. The FTSE 100 added 0.1%, the EURO STOXX 50 edged 0.15% higher, France’s CAC 40 shed 0.2%, while Germany's DAX added 0.4%.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation decelerated to 4.8% in November from 5.0% in October, broadly in line with market expectations.
U.K. consumer prices have eased for two consecutive months since hitting a record-high 5.2% in September.
Month-over-month, consumer price inflation rose 0.2%, matching analysts’ forecasts.
The rate of inflation remains more than double above the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by a seasonally adjusted 3.2% in November, slowing from 3.4% in October. Analysts had expected core CPI to rise 3.3%.
The retail price index rose 5.2% last month, after rising 5.4% in October, above expectations for a 5.1% increase.
The ONS said the biggest downward pressure on CPI came from food, transport, clothing and furniture costs, while alcohol and tobacco prices were the biggest upward contributors.
Following the release of that data, the pound erased modest gains against the U.S. dollar, with GBP/USD easing down 0.01% to trade at 1.5583.
Meanwhile, European stock markets remained mixed. The FTSE 100 added 0.1%, the EURO STOXX 50 edged 0.15% higher, France’s CAC 40 shed 0.2%, while Germany's DAX added 0.4%.