Inflation eases to 10.7% but remains at 'historically high levels'
ITV News Business and Economics Editor Joel Hills discusses what the latest change to the UK's inflation rate will mean for Britons
UK inflation eased back by more than expected last month from October’s 41-year high, but households remained under pressure due to sky-high food and energy costs, according to official figures.
The Office for National Statistics (ONS) said the rate of Consumer Prices Index (CPI) inflation fell to 10.7% in November, from 11.1% in October.
The CPI measures the average change in the prices of goods and services bought "for the purpose of consumption" in the UK.
Its drop in November largely followed falls in the price of petrol and diesel, the ONS said.
Economists had expected CPI inflation to fall to 10.9%.
It marks a welcome decline from the eye-watering 11.1% seen in October, when soaring energy bills sent inflation to its highest level since October 1981.
Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.
But food prices are still surging - up by 16.4% on annual basis last month - while power bills are still painfully high, despite government support.
ONS chief economist Grant Fitzner 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.”
The figures come ahead of the Bank of England’s interest rate decision on Thursday, when it is expected to heap further misery on households with another increase, with a likely rise from 3% to 3.5% to rein in surging inflation.
There are hopes that today's better than expected inflation figure indicates it may have peaked, Joel Hills explains
Chancellor Jeremy Hunt said inflation is “the number one enemy”.
He said: “The aftershocks of Covid-19 and (Vladimir) Putin’s weaponisation of gas mean high inflation is plaguing economies across Europe, and I know families and businesses are struggling here in the UK.
“Getting inflation down so people’s wages go further is my top priority, which is why we are holding down energy bills this winter through our energy price guarantee scheme and implementing a plan to help halve inflation next year.
Which prices are now increasing at a slower rate?
The ONS data said prices at the fuel pumps were among the biggest driver of falling inflation, with petrol unchanged between October and November this year, at 163.6p a litre on average, but rising by 7.2p a litre a year earlier.
Diesel price increases also eased, rising by 4p a litre this year to 187.9p, compared with a larger rise of 7.4p a litre a year ago.
Second-hand car prices also helped CPI fall back, with a 5.8% drop in the year to November compared with a 2.7% fall in the year to October.
The ONS added that tobacco prices rose by 0.1% in November, compared with a 4.2% rise a year ago when duty rates increased as announced in the autumn 2021 Budget.
Clothing and footwear saw a 7.5% annual increase on price tags, though this was down from 8.5% in October.