British inflation hits six-year high, triggers Carney letter to Hammond

As per the data released by the Government, the retail inflation, measured by Consumer Price Index (CPI) hit a seven-month high at 3.58 percent in October, while rising 3.63 percent in November previous year.

Retail inflation, measured by year-on-year change in the Consumer Price Index (CPI), recorded a seven-month high at 3.58 per cent in October, driven by a sharp uptick in momentum, tempered partly by some favourable base effects.

While CPI inflation was higher than the consensus forecast and the Monetary Policy Committee's expectation in November, it has probably now peaked, Paul Hollingsworth, an economist at Capital Economics, said.

The rise in inflation is more than 1 percentage point above the Bank of England's 2 percent target, which means Governor Mark Carney will have to write a letter to the chancellor in February to explain how the central bank will manage the situation.

The "fuel and light' segment's inflation rate accelerated to 7.92 per cent in November". The RBI has raised its inflation projection to between 4.3% and 4.7% for the six months ending in March 2018.

Petroleum displayed the largest annual growth, increasing to 6% in November from 4.1% in October.

Finance Minister Arun Jaitley, who will present his last annual budget in February, ahead of general elections in 2019, is anxious that rising inflation could end the current rate-cut cycle, officials have said.

The jump in retail inflation comes within days of the Reserve Bank warning that there may be a spike in prices in the coming months.

The General Index for the month of October 2017 stands at 123, which is 2.2% higher as compared to the level in the month of October 2016.

United Kingdom consumer price inflation has risen so high that Bank of England governor Mark Carney will have to write a letter to the Chancellor explaining why and what he intends to do about it.

While the recent rise in oil prices has pushed up firms' costs, he pointed out that this is still much lower than the close to 20% rates seen in early 2017.