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UK inflation pushes higher in blow to interest rate cut hopes

Year-on-year inflation in the UK increased to 2.6% in November from 2.3% in the previous month.

The monthly print from the Office of National Statistics matched forecasts, but it nonetheless marked another blow to those hoping for an interest rate cut from the Bank of England on Thursday.

Core inflation came in at 3.5%, slightly lower than the 3.6% forecast.

Office for National Statistics chief economist Grant Fitzner said: “Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago.

This was partially offset by airfares, which traditionally dip at this time of year, but saw their largest drop in November since records began at the start of the century.”

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