Consumer prices in Britain rose 10.7 percent in November from a yr earlier, bringing the speed of inflation down barely from a 41-year high.
Despite this tentative sign that inflation might need peaked, Britain remains to be gripped by a deep cost-of-living crisis as wages fail to maintain up with inflation and households are squeezed by high energy bills, food costs and mortgage rates. Britons are facing the prospect of a pointy decline in living standards over the subsequent two years, which is prompting a growing wave of labor unrest. Railroad and postal staff are on strike on Wednesday over demands for higher pay, while nurses are set to walk off the job on Thursday.
Prices rose 0.4 percent in November from the previous month, when prices climbed 2 percent in a single month because of upper energy bills. The deceleration will bring some relief to Bank of England policymakers who’ve sharply raised rates of interest to attempt to tamp down inflation. Inflation also slowed greater than expected in the USA, data released on Tuesday showed.
In Britain, core inflation, which excludes energy and food prices, slowed to an annual rate of 6.3 percent, from 6.5 percent in October. A slowdown in transportation prices, particularly for fuel, in addition to clothing and recreation services, all contributed to the lower inflation rate, while rising prices in restaurants and for groceries partially offset that.
But this isn’t enough for central bankers to declare victory, because the Bank of England targets a 2 percent inflation rate. On Thursday, policymakers are expected to lift rates of interest for a ninth consecutive time, by half a percentage point, to three.5 percent.