UK inflation accelerates to 2.6% in November

UK annual inflation accelerated for a second straight month in November, continuing to slip away from the Bank of England's (BoE) 2% target and threatening to undermine policymakers' efforts to continue monetary easing.

The consumer prices index (CPI) rose to 2.6% in November, in line with expectations, from 2.3% in October, data from the Office for National Statistics showed today, Dec. 18.

The CPI in September reached its lowest point in three and a half years, falling to 1.7%. However, a rise in October and November was anticipated, partly attributed to the government's decision to increase energy price caps for the winter season, as reported by CNBC.

The BoE convenes tomorrow to determine interest rate policy. Given high inflation within the services sector, analysts anticipate that the central bank will refrain from cutting interest rates.