Market participants are poised for the latest inflation data which will be released on Wednesday. In the previous data, the annual inflation rate eased to 10.7%, from 11.1% in October, but remained at its highest level in over four decades – since October 1981.
Last week, Bank of England Chief Economist Huw Pill warned about the risks of persistent inflation pressures from a tight labour market, confirming that they will strongly influence his monetary policy position in the coming months. The BoE is likely to raise interest rates again to 4% next month’s decision, pointing to its ninth consecutive rate hike.
