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UK Nov CPI inflation rises at fastest pace since May

Published 12/15/2009, 04:33 AM
Updated 12/15/2009, 04:36 AM

LONDON, Dec 15 (Reuters) - British consumer price inflation rose at its fastest pace since May in November after a sharp jump in fuel and lubricant prices, the Office for National Statistics said on Tuesday.

The Office for National Statistics said consumer prices rose an annual 1.9 percent last month, up from 1.5 percent in October and a five-year low of 1.1 percent in September.

Analysts had expected the annual rate to rise to 1.8 percent.

The Bank of England has said it expects inflation to rise even more rapidly in the coming months, possibly to above 3 percent, after a temporary cut in value-added tax is reversed on Jan. 1.

A big upward push came from petrol prices, which rose 2.9 pence per litre in November but fell 9.3 pence per litre in the same month a year ago.

Even excluding volatile components such as energy and food, inflation rose faster than expected. Core CPI increased at an annual 1.9 percent in November -- the highest since November 2008 -- from 1.8 percent in October.

The Retail Price Inflation price gauge, a broader measure which includes housing costs, rose an annual 0.3 percent, also slightly more than expected and the highest year-on-year pace of increase since December 2008.

RPI inflation has been negative for much of the past year.

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