UK Inflation Rises in November


UK annual inflation increased to 3.3 per cent in November, up from 3.2 per cent in October.

Food and non-alcoholic beverages, and clothing are the most significant drivers behind the increase in annual inflation between October and November.

The main downward pressures to inflation between October and November came from recreation and culture, air transport and petrol.

Annual inflation as recorded by the retail prices index (RPI) stands at 4.7 per cent in November, up from 4.5 per cent in October.

The CPI rose by 0.4 per cent between October and November this year compared with a rise of 0.3 per cent a year ago. The 0.4 per cent 1-month change this year is a record increase for an October to November period. Between 1996 and 2008, the 1-month change between October and November varied between a fall of 0.2 per cent and an increase of 0.3 per cent.

The most significant upward contributions to the 1-month change in the CPI between October and November 2010 came from:
• food and non-alcoholic beverages: prices, overall, rose by 1.6 per cent, the largest rise for an October to November period on record. The largest upward effect came from fruit where prices rose by 7.5 per cent. The increase in fruit prices is towards the top end of the range for an October to November period but below the increase of 11.7 per cent a year ago
• clothing and footwear: prices, overall, rose by 2.0 per cent, a record rise for an October to November period. The largest upward effect came from garments
• furniture, household equipment and maintenance: this also showed a record rise for an October to November period, of 1.6 per cent. The largest upward effect came from furniture and furnishings where prices rose by 3.7 per cent.

The most significant upward contributions to the change in the CPI 12-month rate between October and November 2010 came from:
• food and non-alcoholic beverages: prices, overall, rose by 1.6 per cent between October and November this year compared with a rise of 0.6 per cent between the same two months a year ago.
• clothing and footwear: prices, overall, rose by 2.0 per cent compared with a rise of 0.6 per cent a year ago. The main upward effect came from garments, particularly men’s outerwear
• furniture, household equipment and maintenance: the main upward effects came from furniture and furnishings, where prices rose by more than a year ago, and major appliances and small electric goods, where prices rose this year but fell a year ago
• housing and household services: the main upward effect came from materials for maintenance and repair where prices, overall, rose by 2.3 per cent this year compared with 0.6 per cent a year ago


TradingEconomics.com, UK Office for National Statistics
12/15/2010 5:40:08 PM