Investing.com - Consumer price inflation (CPI) in the U.K. increased and narrowly beat consensus in November, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation rose from the year before by a seasonally adjusted 1.2% last month, above forecasts for a gain of 1.1% and compared to the 0.9% increase seen in October.
Month-over-month, consumer price inflation rose by 0.2% in November, in line with forecasts and compared to the prior month’s 0.1% increase.
Bank of England Governor Mark Carney will have to write an open letter to the Chancellor of the Exchequer, Philip Hammond, as inflation is almost a full percentage point below the central bank's target of 2.0%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 1.4% last month, also inching past forecasts for a gain of 1.3% and compared to the 1.2% advance in October.
The retail price index (RPI) increased 2.2% in November, after rising by 2.0% the previous month. Analysts had expected a gain of 2.0%.
Month-on-month, RPI increased by 0.3% in November, compared to unchanged reading the prior month. Analysts had expected a 0.2% rise.
Core RPI increased at an annualized rate of 2.5% in November, compared to the previous month’s 2.2% advance.
Month-on-month, core RPI increased 0.3% last month, compared to October’s flat reading.
The data also showed that the house price index rose 6.9% in November, below forecasts for a gain of 7.3% and following a 7.7% increase in October.
In an immediate reaction, GBP/USD traded at 1.2706 from around 1.2693 ahead of the release of the data, EUR/GBP was at 0.8358 from 0.8365 earlier and GBP/JPY changed hands at 146.46, compared to 146.44 previously.
Meanwhile, European stock markets traded higher. London’s FTSE 100 gained 0.19%, the Euro Stoxx 50 rose 0.78%, France's CAC 40 traded up 0.54%, while Germany's DAX advanced 0.53%.