Now Reading
UK to announce the November inflation rate


UK to announce the November inflation rate

london city life
Photo: Shutterstock/ Songquan Deng

The UK’s Office of National Statistics will release November inflation data today amid last-minute trade negotiations between the UK and the EU over a post-Brexit trade agreement.

Economists expect inflation to remain well below the Bank of England’s (BoE) target of 2% as economic activity remains depressed due to ongoing COVID-19-related restrictions placed on businesses and public gatherings. Little to no increase over last month’s rate would put the November figure between 0.7%-0.9%. The BoE forecasts upward pressure on inflation in the early part of next year, contingent on widespread inoculations and a friendly post-Brexit business environment.

The latter point remains far from certain, as negotiations have repeatedly missed deadlines and prospects for a deal have at best shown a narrow path to success. Expect inflation to rise in the medium-term, likely past the BoE’s target, if a no-deal scenario transpires and cross-border trade faces increased tariffs, higher operational costs and product scarcity. However, an immediate shock may be avoided if the UK and EU agree to the stop-gap measures put forth by European Commission President Ursula von der Leyen, which seeks to keep goods and people flowing in the short-term—a likely outcome given the parties’ aversion to the probable fallout.

See Also

Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.

View Comments (0)

Leave a Reply

Your email address will not be published.

Scroll To Top