Inflation in the U.K. has dipped down from 11.1% to 10.7% in November figures released this morning by the Office for National Statistics show
The rate of inflation was slightly lower than expected
The easing in the annual inflation rate in November 2022 reflected, principally, price changes in the transport division, particularly for motor fuels and second-hand cars.
There were also downward effects from tobacco, accommodation services, clothing and footwear, and games, toys and hobbies.
The largest, partially offsetting, upward effect came from price rises for alcohol in restaurants, cafes and pubs.
Alpesh Paleja, CBI Lead Economist, said:
“The fall in inflation last month supports our view that we’ve likely passed its peak. We expect inflation to continue falling gradually over the year ahead, as global price pressures ease and an economic downturn takes some of the heat out of price setting.
“Despite this, costs and price pressures will likely remain very high in the near-term, putting continued pressure on vulnerable households and businesses.
“Government support has been considerable already, but with the UK set to fall into a recession, targeted measures must be extended to those that need them most. In particular, businesses need clarity on a targeted extension to the Energy Bill Relief Scheme, which should be aimed at supporting heavy energy users.”
