Inflation in the United Kingdom (UK) has skyrocketed to a 5.1% in November, up 0.9% from the previous month of October when inflation stood at 4.2% official statistics from the Office for National Statistics (ONS) has shown.
In the same vein, the price of petrol has climbed to an all-time high, further putting pressure on the economy, and a continued shortage of computer chips pushing up car prices.
The UK’s statistics office said the rise in inflation, exceeded official forecasts of a rise to 4.8% thereby pushing the annual rate to its highest level since September 2011, when it stood at 5.2%.
One of the main drivers of inflation in November was petrol as it rose to an average 145.8p a litre in November compared with 112.6p a litre a year earlier. The November 2021 price of petrol is the highest recorded so far in 2021.
Core inflation, which is calculated after striking out out volatile prices such as petrol, jumped from 3.4% in October to 4% in November, the highest it has risen since 1992 when core inflation climbed to 4.1%.
Reacting to the data, Grant Fitzner, the Chief Economist at the Office for National Statistics said, “A wide range of price rises contributed to another steep rise in inflation, which now stands at its highest rate for over a decade.
“The price of fuel increased notably, pushing average petrol prices higher than we have seen before. Clothing costs – which increased after falling this time last year – along with price rises for food, second-hand cars and increased tobacco duty all helped drive up inflation this month.
“The costs of goods produced by factories and the price of raw materials have continued to increase significantly to their highest rate for at least 12 years.”
In the same vein, Suren Thiru, a Chief Economist at the British Chambers of commerce believes that the Omicron variant could impede the growth of the UK economy, and keep it from recovering. She said, “Our latest outlook suggests that the loss of momentum in the third quarter was more than just a temporary blip, with UK growth forecast to be more subdued for a sustained period as supply disruption, staff shortages and surging inflation limits activity.
“The downgrades to our forecast reflect a moderating outlook for key areas of the UK economy, including consumer spending and trade.
“Consumer spending is likely to be more restrained than expected over the near term from a combination of negative real wage growth and stretched household finances amid rising inflation.
“Trading conditions for UK exporters are expected to remain difficult over the forecast period with the lingering impact of Covid and Brexit expected to weigh on trade flows for some time to come.
“The Omicron variant could stall the recovery if it triggers a prolonged reluctance among consumers to spend or a renewed supply shock by exacerbating current staff shortages through a new ‘pingdemic’ and driving more supply chain disruption.”
