Inflation in the United Kingdom came in slightly lower than expected in November, at 10.7%, as lower fuel prices helped ease price pressures, though high food and energy prices continued to squeeze households and businesses. The Bank of England will announce its next monetary policy move.
The Bank of England faces a difficult task in attempting to drag inflation back towards its 2% target while keeping an eye on the economy’s weakening.
The market expects the Bank to raise interest rates by 50 basis points, bringing the benchmark rate to 3.5%. However, inflation remains far above the target level.
