Inflation rose to 2.6% in November

Inflation rose to 2.6% in November according to the latest Consumer Price Index (CPI) data from the Office of National Statistics (ONS).

The increase of 0.3 percentage points on October’s inflation data means prices in November at their fastest rate since March, with goods on average 2.6% more expensive than at the same time last year; month-on-month the ONS recorded a 0.1% rise in inflation.

The second consecutive month of rising inflation has been driven largely by increases in the costs of fuel and clothing, which were falling in price at the same time in 2023. Food and drink prices also continued to help keep inflation in check, seeing a much lower rate of price rises compared to the double-digit inflation for the sector seen following the Covid-19 pandemic and the start of the war in Ukraine.

With the Bank of England’s Monetary Policy Committee to meet on Thursday 19th December to set interest rates, the latest rise in inflation away from its 2% target means holding the base rate at 4.75% is increasingly likely. The rise in inflation is also in line with estimates following October’s Budget that inflation would tick up to around this level during 2025.

Elsewhere in the world, estimates of inflation for November in other major economies are also seeing an uptick. The USA has seen inflation clime to 2.3% in November, its third consecutive month of rising inflation according to figures from the US Bureau of Labor Statistics. Estimates for France and Germany have recorded inflation at 1.7% and 2.4% resepectively.