January 2, 2023
With decreasing gasoline prices helping to reduce pricing pressures, U.K. inflation came in at 10.7% in November, slightly below predictions, even though high food and energy prices continued to put pressure on individuals and companies.
The consumer price index was expected to rise by 10.9% annually in November, according to economists surveyed by Reuters, following an unexpected increase to a 41-year high of 11.1% in October. The increase in November was 0.4% on a monthly basis, down from 2% in October and under the consensus forecast of 0.6%.
According to the Office for National Statistics, “housing and household services (mostly from electricity, gas, and other fuels), and food and non-alcoholic beverages” were responsible for the highest upward contributions.
“Transport, primarily motor fuels, with increased prices in restaurants, cafes, and pubs constituting the largest, somewhat offsetting, upward contribution,” were the largest monthly downward contributors.
On Thursday, the Bank of England will reveal its upcoming change in monetary policy. As it balances extremely high inflation with an economy that economists claim is already in its deepest recession on record, it is anticipated to hike interest rates by 50 basis points.
Over the holiday season, there will be a lot of strikes as workers call for pay increases that are more in line with inflation and improved working conditions.
Because actual household income is anticipated to fall by 4.3% in 2022–2023, the independent Office for Budget Responsibility predicted that the U.K. would experience its greatest decline in living standards since records have been kept.
In an effort to close a sizable gap in the nation’s public finances, U.K. Finance Minister Jeremy Hunt last month unveiled a comprehensive £55 billion ($68 billion) fiscal plan, which included a number of tax increases and spending reductions.
Source: CNBC
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