UK inflation increase solidifies expectations interest rates will be kept on hold

Associated Press

LONDON (AP) — Inflation in the U.K. has risen to its highest level since March. It’s being driven by an increase in fuel prices last month. The Office for National Statistics said Wednesday that the consumer price inflation rose by 2.6% in the year to November. That’s up from 2.3% the previous month. The increase took inflation further away from the Bank of England’s target of 2%. It was in line with market expectations. This is the biggest increase since March and the second rise in two months and will likely cement market expectations that the Bank of England will keep its main interest rate unchanged at 4.75% after its policy meeting on Thursday.