UK Inflation Turns Positive in November at 0.1%

The UK’s inflation rate as measured by the Consumer Prices Index rose to 0.1% in November, the Office for National Statistics has said.

That compares with a rate of -0.1% a month earlier. Analysts had expected a figure of about zero.

Transport costs, alcohol and tobacco prices were the main contributors to the rise in the rate, said the ONS.

However, this was partially offset by a fall in clothing prices, the ONS added.

This move into positive inflation territory follows two months of negative inflation, or deflation.

Monthly inflation has been between -0.1% and 0.1% since January, when prices grew by 0.3%. Low oil prices and a fiercely competitive environment for supermarkets are keeping prices low.

Last week, UK interest rates were left unchanged again at 0.5% by the Bank of England’s rate-setters.

The nine policymakers on the Monetary Policy Committee voted 8-1 for no change, with the Bank predicting that inflation will stay below 1% until the second half of next year.

via BBC

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