>> Another blow to British consumers' wallets. The country's inflation rate hitting a two year high in November, rising by 1.2% according to the government, and higher than expected. The rise driven by climbing prices for clothing, and the impact of the Brexit vote on the cost of consumer tech goods.
Reuters Economics Correspondent Andy Bruce.>> The big tech players, like Apple, they've bumped up the price of the iPhones to respond to the weaker pound, for instance. In terms of prices across shops, it depends on how retailers have hedged against the weaker sterling. So, into next year when these hedges start to disappear, that's when we might see more inflation, depending on the different store you might walk into.
>> Another big impact seen at the pump, compounded by a recent global oil deal aimed at driving up fuel prices. Unleaded petrol sitting at an average of 115 pence per liter. That's up about 7% compared to a year ago.>> Historically, Britain has a tendency to have pretty high inflation by international standards.
But last year it fell to zero, so, like other economies around the world, the inflation in the UK has been really low. But with the pound's weakness and oil prices, that's a global thing. It looks like inflation is gonna head, by the bank of England's estimate, to around 2.8% by mid 2018.
A lot of analysts think it could go higher, could go to 3%, maybe 4%.>> The value of sterling also expected to continue to fall, currently down 15% against the dollar, making imported goods more expensive Raising prices at the height of the holiday shopping season.