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12 December 2017

Household squeeze continues as inflation rises to 3.1 per cent

UK inflation rose by 3.1 per cent in November, which was higher than expectations, and is the highest level since March 2012.
 
Chris Price, investment specialist at investment management and stockbroking firm Redmayne-Bentley, said: “This unexpected further rise in inflation will continue to squeeze households as average wage growth is just 2.2 per cent.
 
“The increase was attributed to a number of factors including rising prices of food, housing and transportation. At this level, it means that the governor of the Bank of England (BoE) will have to write to the Chancellor to explain how it intends to bring inflation back down to the 2 per cent target level. The BoE is not expected to raise rates at its December meeting following the rise in November, when the governor indicated that there would need to be at least two further rises to over the next couple of years to bring inflation down. Today’s figure is unlikely to change this view.”
 
Household squeeze continues as inflation rises to 3.1 per cent

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