Headline CPI rose 2.6% YoY last month, the fastest annual rate since March, and considerably above the Bank's own forecast of 2.4%. This data confirms persistent inflationary pressures.
The chances of a 25bp cut at the December MPC were already incredibly slim... Today's inflation data cementing the case for the BoE to hold Bank Rate steady.
Looking further out, this morning's data reinforces the case for the BoE to move gradually in removing policy restriction in 2025.
Policymakers will be rapidly seeking convincing signs of disinflationary progress being made, as the economic cocktail facing UK Plc. increasingly becomes a stagflationary one.
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