finance news

UK Inflation hits 10-year high as fuel, fashion, & food prices surge

UK Inflation hits 10-year high as fuel, fashion, & food prices surge
UK Inflation hits 10-year high as fuel, fashion, & food prices surge

Inflation in the UK has reached a decade-high with the Consumer Price Index at 5.1% in November, a day before the Bank of England prepares for its meeting regarding interest rates.

The CPI measure of inflation for last month has climbed up from 4.2% in October, when it was expected to hit 4.7%, becoming the highest since September of 2011.

The central bank of UK, the Bank of England, which is yet to decide on hiking interest rates, is now facing pressure to raise the rates to control the increasing prices. The Bank is reluctant as the move might jeopardize the country’s already stuttering economic recovery, which has been struggling long before the UK arrival of the Omicron variant, as well as the restrictions designed to curb its spread.

The figures from The Office for National Statistics (ONS) reveal the pressure being faced by UK households as the nation heads into another festive period afflicted by COVID-19, while Prime Minister Boris Johnson’s government faces a political storm in Parliament.

As per data, factors such as an increase in prices of fuel, which had hit a record high last month, fashion, food, and second-hand vehicles have heavily influenced the rise in inflation.

Costs of goods produced in factories, as well as prices of raw materials, will be further putting pressure on consumer prices in the coming months, already hitting at least a 12-year high.

Chancellor of the Exchequer, Rishi Sunak, has stated that in order to help families and households amidst rising inflation, the government is spending £4.2 billion ($5.5 billion) to support their living standards while providing targeted measures for the vulnerable in the coming winter months.

Across transport, annual inflation is at 12.5%, highest since 2006, due to elevated prices of fuel and used cars, especially due to the pandemic. Food prices are also suffering from inflation, being at highest since 2018.

Pat McFadden, Labour Party’s Shadow Chief Secretary for the Treasury claims that the government is blaming the global problem instead of taking an action, trapping the people in a cycle of high-tax and low-growth.

Source credit: https://news.sky.com/story/inflation-surges-to-higher-than-expected-5-1-12496111

About the author

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.