The cost of living in the UK continues to rise as inflation climbs higher, leaving families struggling to keep up with everyday expenses.
According to the latest data from the UK Office for National Statistics (ONS), inflation reached 2.6% in November 2024, up from 2.3% in October.
This increase puts inflation well above the Bank of England’s target rate of 2%, making it less likely that the bank will cut interest rates in its upcoming decision.
The rise in inflation has become a major concern for families, many of whom are already facing higher costs for food, energy, and transport.
Finance Minister Rachel Reeves responded to the inflation data, saying, “I know families are still struggling with the cost of living and today’s figures are a reminder that for too long the economy has not worked for working people.”
The data reveals that in the 12 months to November, the Consumer Prices Index (CPI), a key measure of inflation, rose by 2.6%.
This marks a jump from the previous month’s figure of 2.3%, and signals a continued rise in prices for everyday goods and services.
The increase in inflation is a blow to the Labour government, which has been working to grow the economy since taking power in July.
The UK’s inflation target, set by the Bank of England, remains at 2%. However, the latest data shows inflation is significantly above this target.
Inflation has been a growing issue for the UK economy, and the latest figures suggest the situation is not improving anytime soon.
The data also showed that on a monthly basis, CPI rose by 0.1% in November compared to a decrease of 0.2% in November 2023.
Transport costs were the largest factor driving the increase in prices last month.
The rise in transportation costs is being felt across the country, from the price of petrol to the cost of public transport.
Core CPI, which excludes energy, food, alcohol, and tobacco, also saw an increase, rising by 3.5% in November compared to 3.3% in October.
This increase in core inflation suggests that the price of many essential goods and services is still on the rise, even when energy and food costs are excluded from the calculation.
The latest inflation data is a reminder of the ongoing economic challenges faced by the UK government.
Paul Dales, the chief UK economist at Capital Economics, explained, “The further rebound in CPI inflation… could have been worse.”
However, he added that the strong rebound in wage growth, which was reported just a day earlier, makes it unlikely the Bank of England will make any immediate changes to interest rates.
The Bank of England will make its decision on interest rates this Thursday.
The latest inflation data will likely play a role in the central bank’s decision.
Last month, the Bank of England made a small 0.25% reduction in interest rates, bringing the key borrowing rate down to 4.75%.
This was the first time the Bank of England had cut rates since early 2020 when the UK economy was struggling with the impact of the COVID-19 pandemic.
However, despite this rate cut, inflation continues to climb, making it harder for families to make ends meet.
The Labour government has faced criticism over its handling of the economy, as inflation remains above the target rate and living costs continue to rise.
For many families, the increase in prices is a reminder of the ongoing financial strain they are under.
As inflation climbs, the impact is felt most by low- and middle-income families, who are already struggling with high housing costs, expensive groceries, and rising utility bills.
In response to the latest inflation figures, Finance Minister Rachel Reeves acknowledged the difficulty many families are facing.
“The rise in inflation shows that there is still a long way to go before the economy works for everyone,” she said.
With inflation continuing to climb, the Bank of England faces tough decisions about how to manage interest rates.
While the central bank has recently reduced rates, it may be forced to keep them higher for longer in an effort to control inflation.
The latest data highlights the difficulty the UK government faces in trying to balance economic growth with the need to keep inflation under control.
As families continue to struggle with rising costs, the government’s efforts to manage the economy will be under intense scrutiny in the coming months.
Many families are hoping for some relief, but with inflation still above the target rate, it may take longer than expected for the situation to improve.
For now, families will continue to face the challenges of rising prices, while the government and the Bank of England work to find solutions to the growing economic concerns.
