UK inflation holds steady below Bank of England's target

December 18, 2019 - 3:48 am

LONDON (AP) — Official figures show that inflation in Britain held steady at 1.5% in the year to November, way below the Bank of England's target of 2%.

The Office for National Statistics said Wednesday that the largest downward push on the consumer price index came from accommodation services and tobacco, while the largest upward contributions came from food, and recreation and culture.

The unchanged reading was slightly higher than expectations for a modest decline to 1.4%.

Though inflation remains markedly below target, Bank of England policymakers are not expected to cut the bank's main interest rate on Thursday from the current 0.75%.

The outlook for the British economy remains murky. Though Britain's departure from the European Union is widely considered to be a negative for the long-term health of the economy, the fact that Prime Minister Boris Johnson's Conservatives won a majority in last week's election has reduced some of the uncertainty related to Brexit in the near-term.

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