U.K. inflation jumped to 1.2 percent year-on-year in November, just beating analyst expectations for a 1.1 percent increase, according to data from the Office for National Statistics (ONS).
The figures showed clothing, recreation and culture as being key drivers of November's consumer price inflation (CPI) number, a broad measure which includes volatile energy and food prices.
This figure is the highest since October 2014 and markedly above the 0.1 percent notched up a year ago in November 2015. It also reverses the unexpected miss on forecasts the prior month when inflation was recorded at 0.9 percent versus expectations for a 1.0 percent jump.
Meantime, core CPI (which excludes energy and food) - came in at 1.4 percent, also above forecasts of 1.3 percent. Turning to retail prices (RPI), the November figure came in at 2.2 percent, above expectations of 2.1 percent.
Gilts briefly dipped to session lows after the release as sterling edged marginally higher and the main U.K. stock market, the FTSE 100, took the data in its stride and continued along its positive trajectory for the morning.