Rising import prices have driven inflation to 1.2% from 0.9% in October, compared to expectations of 1.1%.

A 14.6% rise in import prices, their biggest rise since 2011 follows the slump in the value of the pound since the EU vote.

Core inflation rose 1.4%, against estimates of 1.3%.  Consumer price index (CPI) inflation is now at its highest since October 2014.

The rise was a result of higher priced clothing, fuel and hotel and restaurant charges. Those increases were partly offset by falls in air fares and food and non-alcoholic drinks.

Today the US Federal Reserve begins a two day meeting to decide if it wants to raise the interest rates.

Expectations of a rise caused commodities to fall against a rise in equity markets. The FTSE 100 was trading 71 points higher near the close at 6,961. Other European markets were higher.

The pound was trading at $1.27 and €1.19.

Gold and Silver reversed yesterday evening’s gains. Oil is steady at $52 a barrel following the OPEC announcement. Copper has taken dip.