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Carney to Put Pen to Paper as U.K. Inflation Climbs Above 3%

  • Consumer prices rise annual 3.1% on air fares, computer games
  • BOE Governor obliged to write letter to Chancellor Hammond
Bloomberg business news
UniCredit’s Vasileios Gkionakis discusses U.K. inflation and BOE policy.Source: Bloomberg
Updated on

U.K. inflation unexpectedly accelerated to the fastest in more than 5 1/2 years in November, which will force Bank of England Governor Mark Carney to explain why price growth is so far above his policy target.

The 3.1 percent rate was stronger than economists had forecast and the highest since March 2012. The Office for National Statistics said on Tuesday that the increase was driven by the cost of air fares and computer games.