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Inflation picks up during November

By Steve Williams

16th December 2009

Inflation picked up in November, with the consumer price index (CPI) rising from 1.5 per cent to 1.9 per cent.

According to the Office for National Statistics (ONS), the rise was fuelled by soaring petrol prices and marked the highest rate of increase since May.

CPI – the government’s target measure – was influenced largely by transport, with ‘fuels and lubricants’ up 2.8 per cent between October and November.

Small upward pressures from clothing and footwear, were also witnessed, along with housing and household services, the ONS revealed.

The largest downward pressure affecting the change in the CPI annual rate came from food and non-alcoholic beverages – prices in this category rose by 0.6 per cent between October and November compared with 1.4 per cent a year ago.

Mark Bolsom, head of UK trading desk at Travelex, said: “We expect figures to continue climbing, as rising oil prices, a weaker pound and the reversal in VAT have caused inflationary pressure.

“We could very well see consumer price inflation hitting the three per cent mark early next year.”

Meanwhile, retail price index annual inflation stood at 0.3 per cent in the year to November, compared with a fall of 0.8 per cent in October.

The last time this rate rose by more than 1.1 per cent was between March and April 1990, when it increased from 8.1 per cent to 9.4 per cent.