FOOD, clothing, footwear, fuel, non-alcoholic drinks, alcohol, tobacco, and gig & play tickets all rose at a faster pace last month, leading to another increase in UK inflation.
The inflation rate went up for the second month in a row, with prices rising at their fastest pace since March, hitting 2.6% in the year to November.
Economic analysts said that the latest figures mean that the Bank of England will almost certainly not cut interest rates today.
Chancellor Rachel Reeves said she recognised that families are still struggling with the cost of living. Today’s figures are a reminder that for too long the economy has not worked for working people.’
Housing and household services costs, including rent, rose by 3.5% over the past year.
In response to the increase in inflation, Unite general secretary, Sharon Graham said: ‘Once again, inflation is creeping back up and we know why.
‘Time and time again Unite has raised the alarm on corporate profiteering. Our recent study found that average profit margins have soared compared to the pre-pandemic period.
‘National Grid reported profits of £4.8 billion this year. If the government was serious about controlling inflation, instead of releasing complex plans to support private sector profits in our energy sector, it would take decisive action and bring the National Grid back into public ownership.’
Wage costs for businesses will rise again in April, after measures announced in October’s Budget come into force.
Recent figures show that the economy shrank in September and October, and the usual BoE response would be to lower interest rates to ease the pressure on mortgage-holders and other borrowers.
However, rising prices, combined with figures on Tuesday which showed faster growth in wages, suggest the BoE will keep rates at their current 4.75%.
Paul Dales, chief UK economist at the think tank, Capital Economics, said: ‘There is almost no chance of the Bank of England delivering an early Christmas present with another interest rate cut tomorrow.
‘That’s especially the case since domestic inflation pressures appear to be a touch stronger than the Bank expected.’
