Inflation in the UK remained below forecasts in November, indicating that the worst may be over.
According to data from the UK Statistics Office, inflation fell to 10.7 percent from 11.1 percent annually in November. The expectation of economists participating in the Bloomberg survey was 10.9 percent.
The decline in gasoline, clothing and second-hand vehicle costs was influential in the slowdown.
Core inflation fell to 6.3 percent in November after a 6.5 percent increase in October. Services inflation remained at 6.3 percent, the highest in 30 years.
Although the announced data is expected to be satisfactory for the households affected by the increase in energy and food costs, it is not likely to cause a change in the Bank of England’s interest rate decisions. The Central Bank is expected to raise interest rates for the ninth time this year to contain inflation at its meeting on Thursday. Messages may also be given that the increases will continue in the first half of 2023.
Suren Thiru, Director of Economics at the Institute of Chartered Accountants, said: “The data point to a peak in inflation. However, inflationary pressures are wide-ranging, and the path to brake on rate hikes will be slow.”
The data released yesterday in the USA pointed out that the peak has been seen in inflation, which declined to 7.1 percent annually.
