UK Inflation Cooled in November
19 December 2018 - 10:03AM
Dow Jones News
By Jason Douglas
LONDON--Inflation in the U.K. cooled in November, bringing the
annual rate closer to the Bank of England's 2% target.
The central bank has signaled that it is poised to raised
interest rates three or more times in the next couple of years to
keep a lid on price growth, assuming Britain's exit from the
European Union in March goes smoothly.
Annual inflation in the U.K. was 2.3% in November, down from
2.4% a month earlier, the Office for National Statistics said
Wednesday.
The slowdown was driven by falling oil prices, which offset
higher prices for tobacco and alcohol.
The BOE expects inflationary pressure to persist in the U.K.
economy as a buoyant labor market spurs faster wage growth.
But officials say the outlook for policy depends on Brexit.
Prime Minister Theresa May has yet to convince lawmakers in
Parliament to endorse a withdrawal deal negotiated with Brussels,
raising the risk of an abrupt and messy break from the bloc in
March.
Write to Jason Douglas at jason.douglas@wsj.com
(END) Dow Jones Newswires
December 19, 2018 04:48 ET (09:48 GMT)
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