UK inflation hits 10-year high as cost of living compression tightens


The data also revealed that the Retail Price Index (RPI) measure of inflation hit its highest level in more than 30 years – reaching 7.1% last month, up from 6% in October.

Inflation in the UK has reached its highest level in more than a decade as supply chain disruption and record fuel prices pushed up the cost of living, official figures show.

The Office for National Statistics (ONS) said the consumer price index (CPI) inflation rate rose from 4.2% in October to 5.1% in November – the highest since September 2011 and a bigger jump than expected.

The data also revealed that the Retail Price Index (RPI) measure of inflation hit its highest level in more than 30 years – reaching 7.1% last month, up from 6% in October.

Exposing the growing cost of living crisis facing the British, the ONS has reported soaring prices for a multitude of goods and services, including fuel, energy, cars, clothing and the food.







The ONS has reported soaring prices for a multitude of goods and services, including fuel, energy, cars, clothing and food.
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Figures showed gasoline prices hit an all-time high – 145.8 pa liter last month – while the cost of used cars also rose due to the shortage of new engines as supply chain issues continue to plague the economy.

This is the first time the CPI has exceeded 5% in more than a decade and has seen inflation stay more than double the Bank of England’s 2% target.

The data puts more pressure on the bank ahead of its interest rate meeting on Thursday, with policymakers weighing the need to contain soaring inflation but also to support growth as the Omicron threat grows.

The dizzying jump in inflation is higher than expected, with economists forecasting a rise to 4.8% in November.

Chancellor Rishi Sunak said: “We know how difficult rising inflation can be for families and households, which is why we are spending £ 4.2bn to support living standards and provide targeted measures for the most vulnerable during the winter months.

“With the virus resurfacing, the most important thing we can do to save the economic recovery is for everyone to get a boost now.”

But Labor said the government was not doing enough to tackle rapidly rising inflation.

Shadow Chief Secretary of the Treasury Pat McFadden said: “These numbers are a stark illustration of the cost of living crisis facing families this Christmas.

“Instead of acting, the government is looking the other way, blaming ‘global problems’ while trapping us in a cycle of high taxes and low growth.”

The ONS said price increases were “widespread” in the economy, with households coming under increasing pressure from sharp increases in gas and electricity costs.







Inflation for food and beverages was 2.5% last month
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Food prices are also rising noticeably as supply chain issues hit retailers hard, with food and beverage inflation hitting 2.5% last month – the highest in more than three years.

Elsewhere, data showed the CPIH, which includes owner-occupied housing costs and is the ONS’s preferred inflation measure, was 4.6% in November, up from 3.8% in October.

Economist Samuel Tombs, of the Macroeconomics Hall of Fame, said inflation is now “uncomfortably high” for the bank, but believes rate-setters will still hold their own this week.

“The rapid rise in CPI inflation over the past four months is unlikely to panic the MPC into raising interest rates this week, given that the scale of economic damage from Omicron is still unknown, ”he said.

Becky O’Connor, Interactive Investor, said: “Those with low, fixed incomes, such as retirees, face the most difficult struggle to keep their standard of living within their budget.

“Budgeting will need to be boosted for those who have little disposable income at the end of the month.

“This could cause some people to use overdrafts and credit cards more, or prevent some families from paying their bills. People who have been relatively relaxed in the past about the need to budget may also consider tightening their belts. .

“With inflation leaving interest rates on cash savings in the dust, it becomes very difficult to store money safely and still get any return. Money held in savings is constantly losing value.

“For those who can invest for longer periods of time and don’t need as much cash to cope with emergencies, investing in the stock market through ISAs is worth considering. It may also be worth reviewing the performance of your pension funds. It is important that investments in pension plans beat inflation over the long term to protect pension plans.

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