UK inflation increases as cigarettes and petrol drive price rises
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The Office for National Statistics has announced the latest monthly Consumer Prices Index reading. The rate of price rises in the UK increased to 2.6 per cent in November, as a hike in tobacco duty and petrol costs drove inflation higher. The Office for National Statistics (ONS) announced the latest monthly Consumer Prices Index (CPI) reading on Wednesday, up from 2.3 per cent in October.
![[Ms Reeves was accused of “irresponsible and inflationary decisions” by Shadow Chancellor of the Exchequer Mel Stride]](https://static.independent.co.uk/2024/12/16/15/cfc9d575df4d412025b5a2b91670ed59Y29udGVudHNlYXJjaGFwaSwxNzM0NDQ4NTkz-2.78443615.jpg)
The inflation level swung back above the Bank of England’s 2 per cent target in October, largely because of household energy bills being pushed up as the price cap rose. Chancellor of the Exchequer Rachel Reeves said the figures are a “reminder that for too long the economy has not worked for working people”, adding that there is “more to do” for working people to be better off.
At the end of October, taxes paid on cigarettes and other tobacco products increased in line with inflation, which is likely to be a major driver of higher inflation last month, according to economists. Food and alcohol prices have also edged higher ahead of the festive season, and an increase in petrol costs between October and November has added to overall price pressures.
The UK’s services sector, which encompasses everything from hospitality and leisure, to real estate, education and healthcare, has been closely monitored by the Bank of England because of concerns that inflationary pressures have remained more persistent.
