U.S. News

U.K. Inflation Rises to 2.7% in November


Consumer price inflation in the United Kingdom accelerated to 2.7% in November compared to the same month a year ago -- the highest rate in a decade, the government said Tuesday.

That was up sharply from 2.4% in October.

The rate moved well above the Bank of England's target of 2%, keeping up pressure for further increases in interest rates. The bank raised its base rate a quarter of a point to 5% in November but held steady last week.

The underlying rate of retail price inflation rose from 3.2% in October to 3.4% percent last month, the Office for National Statistics said.

The so-called headline rate of retail price inflation, including mortgage interest payments, rose from 3.7% in October to 3.9% last month, the ONS said.

The biggest upward pressure came from transport costs, as gasoline prices fell by 0.4 pence per liter between October and November, compared to a drop of 3.6 pence a year earlier. Air fares also decreased less than in the previous year, the ONS said.