Elevated energy costs kept British inflation at an annual rate of 2.1% in November, official data shows today, but analysts still forecast more interest-rate cutting by the Bank of England.
The 12-month inflation rate, unchanged from October, remained above the Bank of England's 2% target, as motor and heating fuel costs rose, the Office for National Statistics said in a statement. Analyst forecasts were for inflation of 2.2%.
The Bank of England earlier this month trimmed British interest rates for the first time since August 2005 in a bid to combat slower economic growth hit by an ongoing global credit squeeze. The bank cut its key rate by a quarter of a percentage point to 5.5% on December 6.
The ONS added that on a monthly basis, Britain's consumer price index inflation rose 0.3% in November after an increase of 0.5% in October. The November figure was in-line with analyst expectations.
