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Inflation in the UK accelerated to 2.6 percent in November, in line with analysts’ forecasts, reinforcing expectations that the Bank of England will keep rates steady at its meeting on Thursday.

The year-on-year increase in the consumer price index was more than the 2.3 percent recorded in October, as the costs of motor fuels and clothing helped push the annual rate higher.

The Office for National Statistics data comes as the BoE’s Monetary Policy Committee meets this week to set rates amid signs of a stagnating economy.

GDP declined for two consecutive months, while business surveys pointed to weaker confidence and restrained hiring intentions. But a pick-up in the UK salary growth helped dispel hopes of an interest rate cut this week.

The services inflation rate, which is closely watched by the central bank as a measure of underlying domestic price pressures, was 5 percent in November, matching October’s figure but below analysts’ expectations. by 5.1 percent.

BoE policymakers highlighted the continuation of inflation services as a reason to be cautious before lowering interest rates again after the key rate was cut to 4.75 percent in two quarter-point moves today. year.

Governor Andrew Bailey said the BoE continue to ease the policy gradually. Clare Lombardelli, the deputy governor, told the Financial Times in November that she was concerned that inflationary services continued to be “too high” rates in line with the BoE’s 2 percent target.

November’s services price reading was slightly ahead of the BoE’s own 4.9 percent forecast.

“This rise in inflation extinguishes any lingering hopes of an interest rate cut on Thursday, while concerns about rising risks to inflation, including the recent pick-up in wage growth, mean the February extension is not a done deal,” said Suren Thiru, Economics Director of the accountants’ body ICAEW.

“I know families are still struggling with the cost of living and today’s figures are a reminder that for too long the economy has not worked for working people,” chancellor Rachel Reeves said.

After the data release, sterling fell 0.1 percent to $1.269.