UK inflation: Nov-19 strength partly persists
- UK inflation exceeded expectations in Nov-19, mostly due to food prices amid payback and rapid passthrough of wholesale pressure. Thomas Cook’s collapse may have boosted airfares, which would also support Jan-20 in the ONS’s approach.- Underlying pressures appear to have troughed, with the median already at 2% again and domestically produced parts of the basket likely to rise in 2020. Further falls in headline rates are mostly driven by administered and currency shocks.
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