UK inflation rate rises to 2.6% — highest in eight months

The inflation rate in the United Kingdom (UK) rose to 2.6 percent in November — up from 2.3 percent in October.

The new rate, which represents the third increase in 2024, is the highest recorded since March when it dropped to 2.3 percent.

The Office for National Statistics (ONS) said the increase is largely due to housing costs and transport.

On a month-on-month basis, the ONS said the consumer prices index (CPI) rose by 0.1 percent in November this year — down by 0.2 percent in November 2023.

The office also said the CPI, including owner occupiers’ housing costs (CPIH), rose by 3.5 percent in the 12 months to November — up from 3.2 percent in October.

“The owner occupiers’ housing costs (OOH) component of CPIH rose by 7.8% in the 12 months to November 2024, up from 7.4% in the 12 months to October,” ONS said.

“This is the highest annual rate since February 1992 in the constructed historical series. OOH costs rose by 0.8% on the month, compared with a 0.4% increase a year earlier.”

The statistics firm further said the largest upward contribution to the monthly change in both CPIH and CPI annual rates came from transport, with a further large upward effect in CPIH from housing and household services.

“Core CPIH (excluding energy, food, alcohol and tobacco) rose by 4.4% in the 12 months to November 2024, up from 4.1% in October; the CPIH goods annual rate rose from negative 0.3% to positive 0.4%, while the CPIH services annual rate rose from 5.6% to 5.7%,” the firm said.

Commenting on the rate, Grant Fitzner, ONS chief economist, said “Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago”. 

Fitzner also said the rate was offset partially by airfares, which traditionally dip at this time of year, but “had their largest drop in November since records began”.