Urgent - Inflation in the UK accelerates again in October, exceeding expectations.

On Wednesday morning, the British Office for National Statistics released inflation data for November, which showed a acceleration in the growth rate of inflation in the UK for the second consecutive month, following a record low for inflation since April 2021 in the previous month.

According to the released data, the general inflation rate in Britain accelerated to 2.6% year-on-year in November, which was in line with expectations, as markets had anticipated growth at the same rate. The change in the Consumer Price Index recorded a growth rate of 2.3% in the previous October.

As for the core inflation rate - which excludes food and energy prices - it also accelerated to record 3.5% year-on-year in November, while market expectations indicated an acceleration to 3.6%. Core inflation had accelerated to 3.3% in the previous October.

Consumer price indicators reflect inflation rates in the economy, and inflation is a general increase in the prices of goods and services. Therefore, the relationship between inflation and interest rates is essential for understanding the importance of such an indicator in Britain, in addition to knowing its impact on markets and all investments.

In countries like Britain, monetary policy decisions depend on the inflation target set by the Bank of England, which means that the inflation rate in Britain affects all interest rates imposed on businesses and consumers, thereby impacting stock, bond, and commodity markets. Exceeding the forecast reading is seen as positive for the British currency; the pound sterling, while a decline below expectations is considered negative for the pound sterling.