UK inflation rate rises to 3.4% in year to Dec.
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Inflation, which measures the rate of price increases over time, remains above the Bank of England's 2% target.
Growing divergence between US and UK monetary policy could increase inflation risks in Britain and complicate the path of interest rate cuts, a Bank of England (BoE) policymaker has warned. Megan Greene said looser-than-expected policy from the US Federal Reserve would add to UK inflationary pressures,
The annual rate of consumer-price inflation was 3.4% in December, up from 3.2% in November, the first increase since July.
In December, headline inflation in the UK rose at an annual rate of 3.4 per cent, slightly above market forecasts of a 3.3 per cent increase and firmer than November’s 3.2 per cent rise.
Bank of England interest rate-setter Megan Greene said on Friday she remained worried about signs of the pace of wage growth ahead and inflation expectations while a slowdown in the labour market appeared to be gradual.
LONDON, Jan 21 (Reuters) - Britain's main inflation measure sped up by more than expected to 3.4% in December from 3.2% in November, official figures showed on Wednesday. A Reuters poll of economists had shown a median forecast of a rise in consumer price inflation to 3.3%.