Investing.com - Consumer price inflation in the U.K. slowed to the lowest level since November 2009 last month, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.1% in November, down from 2.2% in October. Analysts had expected consumer price inflation to hold steady at 2.2% last month.
Month-over-month, consumer price inflation increased by 0.1% in November, below expectations for a 0.2% rise.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 1.8% last month, in line with expectations and accelerating from 1.7% in October.
The retail price index rose 2.6% in November, unchanged from October and below forecasts for a 2.7% increase.
The data also showed that the house prices index climbed 5.5% in October, above expectations for a 4.2% gain and accelerating from a 3.8% increase in September.
Following the release of that data, the pound trimmed gains against the U.S. dollar, with GBP/USD rising 0.05% to trade at 1.6306, compared to 1.6329 ahead of the data.
Meanwhile, European stock markets remained lower. London’s FTSE 100 fell 0.5%, the EURO STOXX 50 dipped 0.6%, France’s CAC 40 dropped 0.9%, while Germany's DAX slumped 0.4%.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.1% in November, down from 2.2% in October. Analysts had expected consumer price inflation to hold steady at 2.2% last month.
Month-over-month, consumer price inflation increased by 0.1% in November, below expectations for a 0.2% rise.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 1.8% last month, in line with expectations and accelerating from 1.7% in October.
The retail price index rose 2.6% in November, unchanged from October and below forecasts for a 2.7% increase.
The data also showed that the house prices index climbed 5.5% in October, above expectations for a 4.2% gain and accelerating from a 3.8% increase in September.
Following the release of that data, the pound trimmed gains against the U.S. dollar, with GBP/USD rising 0.05% to trade at 1.6306, compared to 1.6329 ahead of the data.
Meanwhile, European stock markets remained lower. London’s FTSE 100 fell 0.5%, the EURO STOXX 50 dipped 0.6%, France’s CAC 40 dropped 0.9%, while Germany's DAX slumped 0.4%.