UK Inflation Rises to 2.6% in November

UK inflation rose to 2.6% in November, up from 2.3% in October, driven by increased costs in petrol, groceries, and tobacco, as reported by the Office for National Statistics. This rise in inflation coincides with a 0.1% contraction in the economy in October, raising concerns among businesses and economists about the economic outlook. Wage growth has also accelerated, with regular pay increasing by 5.2%, marking the first significant rise in over a year, which complicates the Bank of England's monetary policy decisions. As a result, expectations for interest rate cuts have diminished, with a negligible chance of a cut in the upcoming meeting, despite calls for a reduction to stimulate growth. Business leaders are pressing the government to reconsider upcoming tax changes that could hinder economic recovery. Overall, the combination of high inflation and stagnant growth presents a challenging economic landscape for the UK.