U.K. inflation moderated in November from October’s 41-year high driven by lower fuel prices, raising hopes that the current price spike has passed its peak.
Consumer prices increased 10.7% in November compared with a year earlier, easing from the 11.1% rise registered in October, which was the highest in more than four decades, the Office for National Statistics said Wednesday.
Economists polled by The Wall Street Journal expected inflation to decline to 10.9%.
The fall in annual inflation in November was driven by lower prices of motor fuels, which were partially offset by rising prices in restaurants, cafes and pubs, the ONS said.
Core consumer prices–a measure that excludes the volatile categories of food and energy–rose 6.3% in November on year, down from 6.5% in October.
The Bank of England is expected to increase interest rates by 50 basis points on Thursday, to 3.5%, slowing from a 75-basis-points rise at its last meeting in November. Lower energy prices, tighter monetary policy and a looming economic recession are expected to continue to tame price growth in the months ahead, economists say.
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