What's going on?

Data out on Wednesday showed UK prices rose by the most in a decade last month, so this could end being Brits� most expensive Christmas by far-la-la-la-la-la-la-la.

What does this mean?

British consumer prices rose by a higher-than-expected 5.1% last month compared to the same time last year ��a hefty increase from October�s 4.2%, and well above the Bank of England�s (BoE�s) prediction of 4.5%. It�d be easy to blame fuel costs, which rose a massive 30% to hit a record high. But prices were on the up across the board: clothing by 4%, furniture by 12%, and second-hand cars by a massive 27%. Put those all together, and core inflation � a measure that removes volatile prices like food and, yep, fuel � rose 4% versus the same time a year ago. That�s�its biggest jump since 1992, which makes you wonder what Jazzy Jeff makes of all this�

Why should I care?

The bigger picture: Don�t forget about you-know-what.
This data would normally have been enough to convince the Bank of England (BoE) to raise interest rates when it meets on Thursday � especially combined with the latest strong jobs update. But there aren�t normal times, in case you�d forgotten: Omicron has prompted the UK government to take new, potentially economy-bruising restrictions ahead of the holidays, and investors now reckon the BoE will put off raising rates till February (tweet this).

Zooming out: China wants to get back on track.
Price rises may have been much milder in China, but the country�s economic growth is still slowing down. There�s a couple of culprits: China�s crackdown on the property market sent residential sales down by around 20% last month versus the same time last year, while Covid-shy shoppers just haven�t been buying as much. That�s got the government’s attention: it�s already planning to boost economic support early next year to stabilize growth, and economists reckon even more could follow.