Inflation rises to 2.6% in November
Slim chances of an interest rate cut tomorrow narrow further.
18th December 2024 08:17
by Myron Jobson from interactive investor
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “UK inflation crept up again in November, offering further evidence that the path to normality is likely to be a winding one.
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“The already-slim chances of an interest rate cut tomorrow have narrowed even further following the latest reading. While the modest rise in inflation was anticipated, the faster-than-expected growth in wages and the surprise fall in GDP give the Bank of England little confidence to lower rates. Cutting interest rates too soon risks undermining progress made in tackling inflation.
“This latest inflation reading highlights that the fight against rising prices is far from over. Inflationary pressures stemming from measures announced in the Budget, such as heavy borrowing, increased public spending, and uncertainties surrounding President-elect Donald Trump’s tariff plans, mean the Bank of England cannot afford to rest easy.
“For consumers, the data serves as a reminder that prices on a range of goods and services continue to rise, albeit at a slower pace, but remain significantly higher than they were a few years ago.
“As a result, many people still feel they are struggling to catch up. It is important to remember that inflation affects everyone differently. We all have a ‘personal inflation rate’ because our spending habits vary. Depending on the goods and services you buy, your personal inflation rate may be lower—or higher—than the headline figure.”
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