Inflation in Canada and the UK is at its highest in 30 years

Consumer inflation accelerated in Canada in December, reaching its highest level in 30 years.

According to the data released by the Canadian Statistics Office, annual inflation was determined as 4.8 percent last month. This figure was in line with the expectations of economists.

On a monthly basis, prices fell 0.1 percent in December after the decline in gasoline prices.

The core indicator, generally considered a better indicator for underlying price pressure, rose 3 percent to a 20-year high.

The data also triggered expectations that the Bank of Canada policymakers, headed by Tiff Macklem, will begin their series of rate hikes next week.

Markets are pricing in six rate hikes by the Bank of Canada over the next 12 months.

All eyes are on the Bank of England's decision on February 3

Consumer prices rose 5.4 percent in December compared to the previous year, according to data from the UK Statistics Office. This is the highest level since March 1992. The median estimate of economists surveyed by Bloomberg was 5 percent. CPI increased by 5.1% in November.

On a monthly basis, inflation increased by 0.5 percent.

The consumer price index (CPI) excluding food and energy increased to 4.2 percent, the highest level since 1992.

The increase in the prices of food and non-alcoholic beverages, restaurants, hotels, furniture, clothing and shoes were effective in the monthly rise. Transportation and motor fuel costs have also increased.

It is stated that the rise in inflation may trigger a new interest rate hike from the Bank of England next month. Central bank officials are worried that inflation will exceed 6 percent in the first half of the year. For this reason, the bank has increased interest rates for the first time since the beginning of the pandemic last month.

The interest rate decision will be announced on February 3.