UK inflation spikes to decade high
British inflation has rocketed to its highest level for more than 10 years on broad-based price gains, data showed on Wednesday, sparking fears that wages will fail to keep pace on the eve of a Bank of England interest rate decision.
The annual inflation rate surged to 5.1 per cent in November after 4.2 per cent in October, the Office for National Statistics (ONS) said in a statement.
That marked the highest level since September 2011, with inflationary pressures driven by jumping fuel costs as the rate accelerated further above the BoE's official target.
The news sparked an outcry from Britain's Unite trade union, which complained many workers faced an effective pay cut with the prospect of below-inflation annual wage increases.
The BoE, whose main task is to keep inflation close to 2.0 per cent, is however expected to hold its record-low interest rate on Thursday due to turmoil over the Omicron coronavirus variant.
Central banks normally use interest rate hikes to try to damp high inflation, which is weighing on companies and consumers globally.
"A wide range of price rises contributed to another steep rise in inflation, which now stands at its highest rate for over a decade," said ONS Chief Economist Grant Fitzner.
"The price of fuel increased notably, pushing average petrol prices higher than we have seen before.
"Clothing costs -- which increased after falling this time last year -- along with price rises for food, second-hand cars and increased tobacco duty all helped drive up inflation this month."
Inflationary pressures were also fuelled by the global supply crunch and jumping commodity prices.
"The cost of goods produced by factories and the price of raw materials have continued to increase significantly to their highest rate for at least 12 years," Fitzner added.
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