Prices in the UK have fallen sharply in a decade, hitting 5.1 percent in November, exceeding expectations.
The rate exceeded economists’ expectations that annual consumer price increases would jump from 4.2 percent in October to 4.8 percent last month, and were much higher than the Bank of England expected it to rise to 4.5 percent.
The BoE did not expect inflation to exceed 5 percent until spring next year.
With the bank’s Monetary Policy Committee announced a recent interest rate on Thursday, the figure along with strong labor market data would have been enough to increase if the Omicron species of coronavirus had not increased economic uncertainty.
However, the IMF on Tuesday told the BoE not to be “biased”, saying this. should raise interest rates preventing inflation from entering the UK economy.
The ONS reported that the main reasons for the rise in prices were the price of petrol and used cars, but there were higher contributions to the rise of all goods and services, meaning lower prices for the whole economy.
Grant Fitzner, an ONS economist, said: “Various inflation has contributed to another rise in inflation, which has reached its highest level in more than a decade.”
“The price of fuel has skyrocketed, making petrol prices higher than we have ever seen. Clothing prices – which have risen sharply this year – as well as rising food prices, used cars and higher tobacco taxes all contributed to rising inflation this month.
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