Inflation in the UK has risen to its highest level in six months in a blow to Chancellor Rachel Reeves and the Labour Government’s record on the economy. Figures from the Office for National Statistics (ONS) reveal the consumer price index (CPI) rate jumped to 2.6 per cent for the 12 months to October 2024.
These figures come ahead of the Bank of England’s base rate announcement later this week with the Monetary Policy Committee (MPC) expected to keep interest rates at their current level.
According to the ONS, inflation jumped by 0.1 per cent on monthly basis, CPI rose by 0.1 per cent, compared with a 0.2 per cent drop in November 2023. Notably, the largest contributing factor to this hike in the CPI rate came from transport costs over the 12-month period.
Furthermore, core CPI increased by 3.5 per cent in the 12 months to November 2024, a slight rise from 3.3 per cent in October. On top of this, the CPI goods annual rate rose from negative 0.3 per cent to positive 0.4 per cent, while the CPI services annual rate was unchanged at five per cent.
Reacting to the ONS figures, Reeves said: “I know families are still struggling with the cost of living and today’s figures are a reminder that for too long the economy has not worked for working people.
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Inflation has risen once again
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“Since we arrived real wages have grown at their fastest in three years. That’s an extra £20-a-week after inflation. But I know there is more to do. I want working people to be better off which is what our Plan for Change will deliver.”
Shadow Chancellor Mel Stride said: “The Chancellor has made a series of irresponsible and inflationary decisions which, as the independent Office for Budget Responsibility said, will leave inflation higher than it was forecasted in March.”
“These figures mean higher costs in the shops, less money in working people’s pockets and risks keeping mortgage rates higher for longer,” Stride added.
Grant Fitzner, the ONS’s chief economist, said: “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.”
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