UK inflation rises to 2.6% in another blow to Keir Starmer | Personal Finance | Finance

UK inflation has risen for the second consecutive month in a row in another blow to the new Labour Government.

The Office for National Statistics (ONS) announced Consumer Prices Index (CPI) inflation rose to 2.6% in the 12 months to November, up from 2.3% in the previous month.

Rising motor fuel and clothing prices were among the key drivers behind the increase. Prices for alcohol and tobacco, and recreation and cultural activities also increased.

Commenting on today’s inflation figures, ONS Chief Economist Grant Fitzner said: “Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago.

“This was partially offset by air fares, which traditionally dip at this time of year, but saw their largest drop in November since records began at the start of the century.”

According to the ONS, air fares dropped by 19.3% in November 2024, compared to a 13.9% decline during the same month last year. The decrease was largely driven by lower fares on European routes.

Chancellor Rachel Reeves commented: “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.”

She added: “Since we arrived real wages have grown at their fastest in three years. That’s an extra £20-a-week after inflation. But I know there is more to do. I want working people to be better off which is what our Plan for Change will deliver.”

Responding to the figures, Shadow chancellor Mel Stride said: “The Chancellor has made a series of irresponsible and inflationary decisions which, as the independent Office for Budget Responsibility said, will leave inflation higher than it was forecasted in March.

“These figures mean higher costs in the shops, less money in working people’s pockets and risks keeping mortgage rates higher for longer.”

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