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MNI DATA IMPACT: CPI Anchored Below Target As BOE Meets>

By Laurie Laird and Les Commons
     LONDON (MNI) - Inflation remained subdued ahead of the Bank of 
England rate-setting this week, setting the stage for a potential rate 
reduction early next year. 
     The following are the key points from inflation data published 
Wednesday by the Office for National Statistics. 
     -- Inflation at both consumer and pipeline level remained subdued 
in November, raising speculation of a split in the Bank of England 
Monetary Policy Committee this week after two members voted for an 
immediate rate cut at the November meeting. 
     -- Consumer price inflation steadied at an annual rate of 1.5%, in 
line with expectations, sitting below the Bank's 2.0% target for the 
fourth straight month. Prices of tobacco and alcohol shaved 0.06 
percentage points from CPI as an increase in duties last year was not 
repeated in 2019.  
     -- Output PPI increased by an annual rate of 0.5%, while core 
output PPI rose by 1.1%, the slowest rate of increase on both measures 
since the summer of 2016.   
     -- The recent sterling rally could keep pipeline inflation in 
check, with the sterling effective exchange rate increasing by 1.7% 
between October and November, the fourth straight rise. On an annual 
basis, sterling appreciated by the same magnitude, the first rise since 
     -- House price inflation remained subdued, rising nationwide by an 
annual rate of 0.7% in October, the slowest pace since September 2012. 
London prices slumped by 1.6%, after the orginally-reported decline in 
September was revised to a 0.8% increase. 
-London bureau: 44 (0) 203 865 3812; email:
[TOPICS: M$B$$$,MABDS$,MAUDR$]                                          

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