The Consumer Prices Index (CPI) rose by 1.2 percent in the year to November 2016, driven largely by a rise in the price of clothing and tech products.
The figure represents a 25-month high for inflation, impounding the worry that the fall in the Pond since Brexit will start hitting British families.
Women’s and men’s outerwear saw the biggest price hike, with clothing prices overall rising 1.6 percent between October and November this year, compared with a fall of 0.1 percent between the same 2 months a year ago.
Britain’s “core consumer prices index” rate, which ignores more volatile items such as energy and food, still saw a sharp 1.4 percent rise.
Nick Dixon, Investment Director at investment group Aegon, believes rising inflation will prompt the Bank of England to raise interest rates in 2017:
“Low interest rates are reaching the end of the road. Inflation is now on the rise and sentiment amongst monetary policy makers is hardening in the UK and US. With expectations that UK inflation will exceed its 2 percent target in early 2017, we can expect monetary belt tightening during the next 6-9 months.”
The November was the highest since October 2014, when it was stood at 1.3 percent.
These upward pressures were partially offset by falls in air and sea fares.
Rebecca Long-Bailey MP, Labour’s Shadow Chief Secretary to the Treasury, said today that she was concerned over the rising price of living in Britain:
“This rise in inflation, following many independent forecasts expecting it to go up further while earnings are set to fall back in coming years, only continues to underline why Labour have been calling on the government to change direction and reverse their cuts to in-work benefits such as Universal Credit, and disabled people on ESA.”