Inflation in the UK has reached “the highest rate in over a decade”, according to a new analysis, amid rising prices for gasoline, food and cigarettes.
The consumer price index inflation rate rose to 5.1% in November from 4.2% in October, the Office for National Statistics said.
Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: âA wide range of price increases have contributed to another sharp rise in inflation, which is now at its highest rate in over of a decade.
âThe price of fuel has increased dramatically, pushing average gasoline prices higher than we’ve seen before. Clothing costs – which have risen after falling around the same time last year – as well as rising food prices, used cars, and higher tobacco taxes all have helped drive inflation up this month.
“The costs of goods produced by factories and the price of raw materials continued to increase significantly at their highest rate in at least 12 years.”
“Omicron variant could block recovery”
Packaging costs have jumped by more than 10% amid rising prices for energy, raw materials and supply chains, according to the boss of one of the UK’s largest carton makers. United.
Miles Roberts, managing director of DS Smith, said those prices were passed on to his customers.
But despite the fact that online retailers and sellers pay more for packaging, companies are using structural changes towards more online shopping to improve the quality of packaging used.
Meanwhile, a group of companies have shared their forecast for the UK economy for 2022.
Britain’s economy will grow at a slower pace than expected next year, with trade expected to lag “significantly”, according to the British Chambers of Commerce (BCC).
The BCC said economic growth is expected to slow to 4.2% in 2022, from its previous forecast of 5.2%.
The downgrade largely reflects a more subdued outlook for consumer spending amid an expected “cut” in household savings accumulated during the closings, the BCC said.
Speaking in early December, Suren Thiru, head of economics at BCC, said: A time when supply disruptions, staff shortages and soaring inflation are limiting activity.
âThe downward revisions to our forecast reflect an outlook of moderation for key areas of the UK economy, including consumer spending and trade.
âConsumer spending is likely to be tighter than expected in the near term due to a combination of negative real wage growth and strained household finances amid rising inflation.
âTrade 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 block recovery if it triggers prolonged consumer reluctance to spend or a new supply shock by exacerbating current staff shortages through a new ‘pingemia’ and leading to further disruption in the chain supply. ”