UK hits it’s highest level of inflation for the first time in a decade

Inflation in the UK is at its highest level in more than a decade as supply chain disruptions and record fuel prices pushed up the cost of living, official data shows. 

The Office for National Statistics (ONS) said the consumer price index (CPI) inflation rate rose from 4.2% in October to 5.1% in November, a higher value since September 2011 and a larger jump than expected. 

The data also revealed that the measure of retail price inflation (RPI) hit its highest level in a 30-year period, reaching 7.1% last month, up from 6% in October exposing the growing and costly crisis facing the British, the ONS has reported rising prices for a range of goods and services, including fuel, energy, cars, clothing and food.

The figures showed gasoline prices to hit the highest level on record – 145.8 per liter last month – while the cost of used cars also rose due to the shortage of new engines then as supply chain issues continue to plague the economy. 

This is the first time the CPI has exceeded 5% in more than a decade and has seen inflation stay more than double the Bank of England’s 2% target. 

The data puts additional pressure on the bank ahead of Thursday’s interest rate meeting, with policymakers weighing the need to curb soaring inflation but also to support growth as the threat of the Omicron variant of the coronavirus increases. Grant Fitzner, chief economist at the ONS, said: 

“A wide range of price increases have contributed to another sharp rise in inflation, which is now at its highest level in more than a decade, we have already seen.

“The price of fuel has increased dramatically, pushing average gasoline prices to a level higher than what we have seen before. ”Contributed to the rise in inflation this month.

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