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London (AFP) – UK inflation fell to 10.7% in November on an annualized basis, following 1.1% in October, but was still close to a 40-year high, the Office for National Statistics said on Wednesday.
The bureau indicated in its monthly report that falling transport prices, especially fuel, were the main factor behind the slowdown in price hikes in November, which was partly overshadowed by rising prices in restaurants, cafes and bars.
The bureau’s chief economist, Grant Fitzner, noted that tobacco and clothing prices continued to rise, but less so than last year.
These figures were released on the eve of the Bank of England’s monetary policy announcement that the market expects to raise interest rates again in a bid to curb inflation, which UK Finance Minister Jeremy Hunt calls ” enemy number one”.
“After the COVID-19 shocks” and the Russian invasion of Ukraine that sent gas prices soaring, “high inflation is hitting economies across Europe and I know families and businesses are struggling here in the UK,” Hunt said in a statement.
“Reducing inflation … is my priority, which is why we are capping energy bills this winter and putting a plan in place to cut inflation in half next year,” he added.
And if Britain’s gross domestic product rose 0.5 percent in October, the British economy is in outright recession, according to a number of forecasting institutes, including the government institute, and this will continue for all next year.
© 2022 AFP
