Inflation rises AGAIN to its highest level since March: Price rises hit 2.6 per cent driven by spikes in the cost of petrol and fags to increase pressure on Chancellor Rachel Reeves_Nhy
Inflation rose for the second month in a row in November, hitting 2.6 per cent to further increase pressure on Labour Chancellor Rachel Reeves over her Budget‘s impact on the country.
Spikes in petrol and tobacco prices drove CPI to 2.6 per cent, up from 2.3 per cent in October, the Office for National Statistics (ONS) said.
And statisticians said the the figure would have been higher but for the largest drop in air fares in almost a quarter of a century.
Ms 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.’
But her Tory shadow 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.
Ms 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.’
Spikes in petrol and tobacco prices drove CPI to 2.6 per cent, up from 2.3 per cent in October, the Office for National Statistics ( ONS ) said.
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.’
At the end of October, the amount of tax paid on cigarettes and other tobacco products increased in line with inflation under a price ‘escalator’ retained in the Budget.
The latest inflation data came after ONS figures showed wage growth rose by more than expected in the three months to October.
Earnings growth also outstripped inflation by 3 per cent over the same period, with CPI taken into account.
Experts said the pick-up in wage growth reinforces expectations that the Bank of England will keep interest rates on hold at 4.75 per cent when it next decides on Thursday, with wages rising and inflation edging higher prompting more caution.
Policymakers have already cut rates twice this year as inflation eased back.
Liberal Democrat Treasury spokeswoman Daisy Cooper said: ‘Today’s figures will be a worry to many who have already had to bear the brunt of this brutal cost-of-living crisis caused by the previous Conservative government’s economic vandalism.
‘The new government has a real task ahead of it to clear up this mess but they have already made some serious mistakes.
‘Their cutting of Winter Fuel Payments will leave millions of pensioners without the support they need this winter and their misguided NICs hike will only see people’s weekly shops become even more expensive.
‘The government needs to finally see sense and reverse these short-sighted decisions or people will continue to suffer.’
