U.K. consumer prices soared to 2.9% from 1.9% which is the first time it has exceeded the BoE’s 2% target since May. The 1.00% increase was the largest since record keeping began in 1997 led by surging oil prices. During December inflation rose 0.6% as transportation and household goods jumped 2.2%. Yet, a 1.3% drop in apparel prices signal that retailers are continuing to use discounts to lure shoppers. Indeed, the central bank forecasted that inflation would remain volatile and may spike above their threshold, but that existing slack would lead inflation lower unless we saw a resilient consumer. Nevertheless, economist were expecting consumer prices s to reach 2.6% and if inflation begins to accelerate faster than the MPC expects, they may be forced to raise rates earlier than expected. To discuss this and other topics, please visit the