Inflation decreases slightly from October high – industry reaction

Latest figures from The Office for National Statistics (ONS) consumer price index (CPI) shows that inflation stood at 10.7 per cent in November, down from its 41-year high of 11.1 per cent in October. Inflation has slowed thanks to an easing in costs of second-hand cars and motor fuel.

Commenting on the date Joanna Elson CBE, Chief Executive of the Money Advice Trust said “Households are facing a tough winter ahead as inflation continues to remain high. It’s clear the challenge of affording essential costs, including food and energy bills, isn’t going away anytime soon and for many is only set to get harder with the cold weather now well and truly with us.”

“Government support announced during the Autumn Statement will provide some targeted relief, but it does not get close to matching the scale of the challenge many households are already facing – and a new cliff edge in April is now coming in to view. Further support and protections are needed including making sure that no one is pushed into hardship by unaffordable debt repayments and suspending the forced installation of energy pre-payment meters.”

Rebecca McDonald, Joseph Rowntree Foundation Chief Economist, said “The only comfort today’s announcement offers families feeling the freeze is that inflation hasn’t risen any further. This is the fourth month in five that inflation was over 10%.”

“Our report lifts the lid on how this frighteningly high inflation rate means so many are going under. 5.7 million low income households went hungry, skipped meals or reduced the size of their meals because they didn’t have enough money for food in the last 30 days. This is while inflation on food specifically is over 16%.”

“Reassurances from government ministers, that things will eventually get better, are hard to stomach if you are one of the people fearing for your future. The Government must provide an additional cost of living payment to those that are struggling the most, to help them get through the winter. They cannot wait until April.”

“So many people were left in this precarious position by a woefully inadequate level of social security. Without substantial changes, it’s clear many people already can’t afford the essentials.”

“No one wants to live in a society that fails to prevent this. People deserve the dignity of knowing that, even when things are extremely difficult, social security allows them to afford basic essentials.”

Jack Leslie, Senior Economist at the Resolution Foundation, said “Inflation fell at its fastest rate in 16 months in November, driven by falling fuel price inflation and a welcome slowing in food price inflation. Britain may now be past its inflation peak, which is good news for policy makers at both the Bank and Treasury as they grapple with rising interest rates and public debt.”

“But with price rises still massively outstripping pay rises – and Britain’s poorest families facing an inflation rate of over 12 per cent – families are still getting poorer month-on-month, and the cost-of-living crisis will continue to deepen in 2023.”