UK November Inflation Rate 10.7%, Below Expectations... Entering a Downward Trend?

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The UK’s inflation rate in November stood at 10.7%, showing a slowdown from October and raising expectations that the surge in prices has peaked and will continue to decline going forward.

According to the BBC on the 14th (local time), the UK Office for National Statistics (ONS) announced that the consumer price inflation rate for November was 10.7% year-on-year. This figure is lower than October’s inflation rate of 11.1% and also below the previous market forecast of 10.9%. October’s inflation rate in the UK had reached its highest level in 41 years, intensifying fears of inflation.

The core inflation rate, which excludes the highly volatile energy and food prices, also decreased from 6.5% year-on-year in October to 6.3% in November. Last month, inflation rates in the US and the Eurozone also came in lower than expected, cautiously fueling hopes that the global inflation trend has peaked and is now on a downward path.

Earlier, the US inflation rate for November was reported at 7.1% year-on-year, marking the lowest level since December of last year. The Eurozone (19 countries using the euro) inflation rate for November also fell to 10% from 10.6% in the previous month.

As the rapid rise in prices eases, the pressure on central banks to raise interest rates is expected to lessen. The Bank of England (BOE) is scheduled to announce its interest rate decision on the 15th, with financial markets anticipating a 0.5 percentage point increase.

However, despite the slight decrease in inflation rates, they remain in double digits, suggesting that the hardships for ordinary citizens will continue to grow. Although gasoline and used car prices have fallen, food price inflation rose to 16.5% year-on-year, up from 16.4% the previous month, marking the highest level in 45 years.

This content was produced with the assistance of AI translation services.