A new report reveals that British inflation jumped to its highest level last month in more than two years.
The Office for National Statistics (ONS) said the 12-month inflation rate hit 1.2 percent in November compared with 0.9 percent in October.
According to ONS, rises in the prices of clothing and motor fuels contributed to the increase, offsetting falls in the cost of air and sea travel.
“Fuel prices tend to reflect movements in oil prices and part of the increase in oil prices during 2016 to date can be explained by depreciation of sterling against the US dollar,” the ONS said.
ONS Head of Inflation, Mike Prestwood, said: “November’s slight rally in the value of sterling eased the inflationary pressure on businesses importing raw materials, but consumer prices continued to edge upwards, due mainly to the rising cost of clothing and fuel.”
This comes as the British pound has been under heavy pressure since Britons voted in June to leave the European Union, resulting in higher import costs.
Media reports say, higher inflation in next year is expected to coincide with a period of poor wage growth. This will in turn lead to growing unemployment and weaker economic growth.
Commenting on the inflation data, the UK Treasury Department said: “The economy remains fundamentally strong with taxes cut for millions of working people and the employment rate at a record high. The autumn statement set out support for an economy that works for everyone, as we adjust to our new relationship with the EU.” – Press TV.
