Advertisement

British inflation rises to 2.7 percent

LONDON, Dec. 12 (UPI) -- Inflation in Britain has soared to its highest level in more than a decade, the Daily Telegraph reported Tuesday.

The jump in the consumer price index from 2.4 percent to 2.7 percent last month is also prompting speculation that the Bank of England's Monetary Policy Committee will soon raise a key interest rate to 5.25 percent.

Advertisement

The Office for National Statistics said higher gasoline prices and utility bills, which are rising at their fastest rate in 26 years, is driving the inflation.

"These data will not make comfortable reading for the Monetary Policy Committee," said Richard McGuire, economist at Royal Bank of Canada. "For the (central bank's fourth quarter) inflation projection of 2.56 percent to be met, December's CPI print will have to edge down to 2.6 percent.

"With the risk of an overshoot therefore very much within the realms of possibility, today's release will prove heartening for those calling for a further rate hike in (Britain) next year."

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement