The rate of Consumer Prices Index inflation fell to 10.7% in November from 11.1% in October (Picture: PA)
The rate of inflation has fallen slightly in a rare bit of cost of living good news.
Figures released today show the Consumer Prices Index inflation dropped to 10.7% in November from 11.1% in October.
The Office for National Statistics confirms prices are still rising steeply but the notable drop will come as welcome news to families and the government.
Upward pressure on households is mainly being fuelled by the price of energy and good, the research confirms.
Prices in restaurants, cafes and pubs have also continued to climb as companies face higher wholesale costs.
But there was good news on transport, particularly motor fuels, where prices have come down.
The fall is more pronounced that analysts had expected, dropping by four percentage points in stead of two.
While prices are still rising at near-record levels, it’s a welcome downwards move after the rate hits its highest rate since October 1981 in the last set of figures.
It’s widely expected that the Bank of England will hike interest rates tomorrow (Picture: Alamy)
The Bank of England is expected to increase interest from 3% to 3.5% in an effort to dampen inflation when it’s leading committee meets on Thursday, a move which will hit mortgage holders.
The British Chambers of Commerce said the UK may be ‘passed the peak’ of rising inflation but warned ‘prices are now at a much higher level which will be felt for months to come’.
Grant Fitzner, ONS chief economist, said: ‘Although still at historically high levels, annual inflation eased slightly in November.
‘Prices are still rising, but by less than this time last year, with the most notable example of this being motor fuels.
‘Tobacco and clothing prices also rose, but again by less than we saw this time last year.
‘This was partially offset by prices in restaurants, cafes and pubs, which went up this year compared to falling a year ago.’
Higher energy costs as the cold weather sits in continue to push inflation in the wrong direction (Picture: Shutterstock)
Chancellor Jeremy Hunt sought to frame inflation as a global problem created by Covid-19 and the Ukraine invasion, describing tackling it as his ‘number one priority’.
He said: ‘I know it is tough for many right now but it is vital that we take the tough decisions needed to tackle inflation – the number one enemy that makes everyone poorer.
‘If we make the wrong choices now, high prices will persist and prolong the pain for millions.’
Shadow chancellor Rachel Reeves said: ‘The question people across Britain will be asking themselves this morning is: “Do I and my family feel better off under the Tories?”
‘The answer will be no.’
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New figures show prices are rising at a rate of 10.7%, an improvement on the last update.
