Investing.com – Consumer price inflation in the U.K. rose unexpectedly in November, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation was a seasonally adjusted 3.3% in November, up from 3.2% in October.
Analysts had expected consumer price inflation to remain unchanged at 3.2% in November.
The rate of inflation was more than a percentage point above the central bank's 2% target. The Bank of England 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.
According to the report, the main factors affecting CPI were an increase in food and non-alcoholic drinks prices, which rose by 1.6%, and a rise in clothing and footwear prices, which rose by 2.0%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs remained unchanged at a seasonally adjusted 2.7% in November, broadly in line with expectations.
Following the release of the data the pound was up against the U.S. dollar, with GBP/USD gaining 0.18% to hit 1.5892.
Meanwhile, European stock markets were down. The FTSE 100 fell 0.18%, the EURO STOXX 50 slumped 0.28%, France’s CAC 40 dropped 0.11%, and Germany's DAX was down 0.08%.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation was a seasonally adjusted 3.3% in November, up from 3.2% in October.
Analysts had expected consumer price inflation to remain unchanged at 3.2% in November.
The rate of inflation was more than a percentage point above the central bank's 2% target. The Bank of England 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.
According to the report, the main factors affecting CPI were an increase in food and non-alcoholic drinks prices, which rose by 1.6%, and a rise in clothing and footwear prices, which rose by 2.0%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs remained unchanged at a seasonally adjusted 2.7% in November, broadly in line with expectations.
Following the release of the data the pound was up against the U.S. dollar, with GBP/USD gaining 0.18% to hit 1.5892.
Meanwhile, European stock markets were down. The FTSE 100 fell 0.18%, the EURO STOXX 50 slumped 0.28%, France’s CAC 40 dropped 0.11%, and Germany's DAX was down 0.08%.