Headline inflation continued its reacceleration in November to the highest rate since March 2024. This second consecutive monthly reacceleration can largely be attributed to rising transport costs, housing, and household service costs. Services inflation, a key gauge for the Bank of England came in a touch below expectations at 5%.

The strength of the latest inflation figures, coupled with Tuesday’s higher than expected wage growth data may well put to bed the possibility of a pre-Christmas rate cut from the BoE on Thursday. Although the public may feel Andrew Bailey and co are channelling their inner Scrooge, prudence on the BoE’s part seems sensible as no one wants to see the inflationary ghosts of Christmas past return.

This latest inflationary spike adds to the New Year challenges facing the BoE. With businesses shouldering the Chancellors national insurance rises, the indication of prices hikes from companies have been coming thick and fast. There may be cuts to jobs and less generous pay rises to boot. Those hoping to see a continuous stream of rate cuts in 2025 will likely be disappointed.