Chamber News
UK inflation eases to 10.7% as annual rate of price increases slows
15 December 2022 • Sarah Medcraf
UK inflation declined at the sharpest rate in 16 months to 10.7% in November as the momentum behind the rising cost of clothing and petrol began to ease amid growing fears of a long recession.
The drop in the consumer prices index figure was slightly bigger than expected by most City analysts, who forecast the annual rate of price rises would slide to 10.9% last month, from 11.1% in October.
However, prices were still rising, albeit at a slower rate, and the increasing costs will add to the pressure on ministers to put up wages across the public sector to close the gap between earnings and rising prices.
Fuel prices rose by 17.2% in the year to November 2022, down from a 22.2% increase in the year to October, while prices of clothing and footwear rose by 7.5% – down from an 8.5% annual inflation rate in October.
Second-hand car prices also played a part in the easing back of inflation. Prices fell by 5.8% in the year to November, having jumped by more than 31% between March and November 2021.
The Office for National Statistics said the cost of hospitality, hotels and restaurant food played the biggest role in pushing prices higher in November by 10.2% from 9.6% in October.
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