UK inflation falls from 41-yr high to 10.7% in Nov giving relief to BoE

Last month the BoE forecast Britain was heading into a long recession, with inflation not returning to target until early 2024, and the government’s budget watchdog predicted the biggest squeeze on living standards since records began in the 1950s.

Core CPI – which excludes energy, food, alcohol and tobacco prices, and which some economists think gives a better indication of longer-term price trends – dropped to 6.3% in November, down from October’s reading of 6.5%.

British inflation started to pick up last year, driven by post-pandemic bottlenecks in the domestic and global economy, and accelerated when European energy prices surged after Russia’s February invasion of Ukraine.

The BoE has also highlighted labour shortages and trade and migration frictions due to Brexit as playing a role in pushing up prices.

(Reporting by David Milliken; Editing by William Schomberg)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

First Published: Wed, December 14 2022. 13:22 IST

business-standard.com