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U.K. Inflation Rate Unexpectedly Increases to 3.3%
The U.K. inflation rate unexpectedly accelerated to a six-month high in November, adding to the case for policy makers to rein in cost pressures.
Consumer prices rose 3.3 percent from a year earlier after a 3.2 percent increase in October, the Office for National Statistics said today in London. That’s the highest since May and exceeded the 3.2 percent median forecast of 33 economists in a Bloomberg survey. Food prices jumped 1.6 percent on the month.
Inflation has been above the government’s 3 percent limit for nine months and a sales-tax increase in January may add to prices in 2011. Bank of England Deputy Governor Charles Bean yesterday said the strength of inflation has increased the risk to price expectations and there may also be less slack in the economy than previously thought.
“It makes a second round of quantitative easing even less likely,” said Alan Clarke, an economist at BNP Paribas SA in London. “Inflation will stay above the 3 percent limit next year with the peak coming in the first quarter. Today’s data tells a story of inflation being elevated for longer.”
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http://www.bloomberg.com/news/2010-1...d-clothes.html
The U.K. inflation rate unexpectedly accelerated to a six-month high in November, adding to the case for policy makers to rein in cost pressures.
Consumer prices rose 3.3 percent from a year earlier after a 3.2 percent increase in October, the Office for National Statistics said today in London. That’s the highest since May and exceeded the 3.2 percent median forecast of 33 economists in a Bloomberg survey. Food prices jumped 1.6 percent on the month.
Inflation has been above the government’s 3 percent limit for nine months and a sales-tax increase in January may add to prices in 2011. Bank of England Deputy Governor Charles Bean yesterday said the strength of inflation has increased the risk to price expectations and there may also be less slack in the economy than previously thought.
“It makes a second round of quantitative easing even less likely,” said Alan Clarke, an economist at BNP Paribas SA in London. “Inflation will stay above the 3 percent limit next year with the peak coming in the first quarter. Today’s data tells a story of inflation being elevated for longer.”
etc
http://www.bloomberg.com/news/2010-1...d-clothes.html
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