UK inflation rose to 2.6% in November, up from 2.3% in October, driven by higher motor fuel and clothing prices. Core inflation, excluding energy and food, reached 3.5%. The Bank of England (BoE) is expected to hold interest rates at 4.75%, citing persistent inflation risks, particularly in services, which remain above the 2% target. While inflation has dropped significantly from its peak of 11.1% in October 2022, the BoE faces challenges balancing price pressures with a stagnating economy after a weak growth number for October. Sterling fell 0.1% to $1.269 after the inflation data was released.