UK inflation rises to 2.6% in November

The inflation rate in the United Kingdom climbed to 2.6% in November, marking the second consecutive month of increases and the fastest pace of price rises since March, official figures reveal.

Key contributors to the inflation surge include higher prices for motor fuel, clothing, and tickets for events such as gigs and plays. However, airfares, which typically dip at this time of year, saw their sharpest November decline since records began.

According to BBC, the chief economist at the Office for National Statistics (ONS), Grant Fitzner stated, “Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago.

“This was partially offset by air fares, which traditionally dip at this time of year, but saw their largest drop in November since records began at the start of the century.”

Chancellor Rachel Reeves acknowledged the ongoing challenges for families facing the cost-of-living crisis, saying, “Today’s figures are a reminder that for too long the economy has not worked for working people. I am fighting to put more money in the pockets of working people.”

While inflation has risen compared to earlier this year, it remains well below its late 2022 peak. After steadily falling for two years, inflation dropped below the Bank of England’s 2% target in September but has since risen for two consecutive months.

According to analysts, the latest data will likely deter the Bank of England from cutting interest rates when it meets on Thursday. The official forecasting body had earlier predicted inflation would rise to 2.6% in 2025, influenced by Budget measures announced in October.

Shadow chancellor Mel Stride criticised the government’s handling of inflation, stating, “The chancellor has made a series of irresponsible and inflationary decisions. These figures mean higher costs in the shops, less money in working people’s pockets and risks keeping mortgage rates higher for longer.”

Other categories, including food, non-alcoholic drinks, alcohol, tobacco, and footwear, saw accelerated price increases last month. A broader inflation measure showed that housing and household services costs, including rent, rose by 3.5% over the past year.

In a similar development, Tribune Online recently reports that inflation in the United States increased to 2.7% in November.