Inflation in the UK hits 2.6% in November, as predicted.

• The Office for National Statistics announced that U.K. inflation reached 2.6% in November, as predicted by economists surveyed by Reuters.
• The core inflation rate, excluding energy, food, alcohol, and tobacco, was 3.5%, slightly below the predicted 3.6% forecast by Reuters.
• "According to Joe Nellis, economic adviser at accountancy MHA, the upward trend is expected to persist in the coming months, as indicated by the energy market and the long-term strain of a tight domestic labor market."

The headline figure for U.K. inflation increased to 2.6% in November, marking the second consecutive monthly rise, according to the Office for National Statistics.

The reading, in accordance with the predictions of economists surveyed by Reuters, increased from 2.3% in October.

The core inflation rate, excluding energy, food, alcohol, and tobacco, was 3.5%, slightly below the predicted 3.6% forecast by Reuters.

The three-and-a-half year low of 1.7% for headline price rises in September was due to an increase in the regulator-set energy price cap this winter, which was expected to cause the price to tick higher in the following months.

"According to Joe Nellis, economic adviser at accountancy MHA, the upward trend is expected to persist in the coming months, as indicated by the energy market and the long-term strain of a tight domestic labor market."

The dominant part of the U.K. economy, the services sector, has experienced persistent inflation. As a result, money markets have priced in almost no chance of an interest rate cut during the Bank of England's final meeting of the year on Thursday. This was further solidified earlier this week when the ONS reported that regular wage growth strengthened to 5.2% over the August-October period, up from 4.9% over July-September.

The November data showed services inflation was unchanged at 5%.

If the BOE does not adjust its monetary policy in December, it will end the year with only two cuts of its key rate, reducing it from 5.25% to 4.75%. Meanwhile, the ECB has implemented four quarter-percentage-point cuts and has indicated a strong commitment to lowering its rates further in the future.

The Federal Reserve is predicted to reduce rates by a quarter point at its meeting on Wednesday, bringing the total cuts for the year to one percent. However, there is some doubt about whether this move is necessary due to inflationary pressures.

This is a breaking news story and will be updated shortly.