MNI BRIEF: UK Nov Pipeline Inflation Hits 13-Year High

UK factory gate inflation hit a 13-year high in November, suggesting the consumer price inflation could rise further from the decade-high 5.1% recorded last month. Output price inflation jumped to an annual rate of 9.1%, the highest since September 2008, from 8.6% in October, far outpacing expectations of a rise to 8.2%, the Office for National Statistics said.

Core inflation rose to a record high 7.9% (series dates back to January of 1996) from 7.1% in October. Input prices soared to an annual rate of 14.3%, well ahead of forecasts, from an upwardly revised 13.7% in October, the fastest pace since August 2008. The data will provide food for thought as members of the Monetary Policy Committee gather for their final meeting of the year later on Wednesday.

Analysts are downplaying the risks of a rate hike this month, given the uncertainty posed by the Omicron virus. However, inflation has again exceeded the Bank of England’s November forecasts.