Belfast Telegraph

Inflation set to hold tight at 3% for November

By Ben Woods

Inflation is set to hold steady for the third month in a row, as the rampant rise in the cost of living shows signs of peaking.

The Consumer Prices Index (CPI) measure of inflation will remain at 3% in November, according to City consensus figures, suggesting the mounting pressure on household finances is starting to ease.

CPI has paused at 3% throughout October and September, picking up from 2.9% in August and steadily rising from 1.8% at the start of the year.

The outcome has left Bank of England Governor Mark Carney teetering on the brink of having to write a letter to Chancellor Philip Hammond explaining why inflation is so high.

The Government has set an inflation target of 2%, with protocol dictating that the Bank must contact Mr Hammond if inflation exceeds 3% or falls short of 1%.

The Bank, which raised interest rates to 0.5% earlier this month, has predicted CPI to peak at 3.2% in the autumn.

Belfast Telegraph

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