UK inflation rate rises for second month in a row in latest Labour budget blow

18 December 2024, 07:11 | Updated: 18 December 2024, 07:45

Inflation has risen once again in the UK

The CPI figure has risen from 2.3% in October to 2.6% in November in another blow following Labour’s November Budget.

This increase was expected, however, with economists predicting the figure to rise to around 2.7%.

While this is above the Bank of England’s 2% target, it remains within the normal range, the Bank of England says.

Experts had expected inflation to tick up towards the end of this year, following a sharp drop in the summer and rising energy bills.

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Chancellor Rachel Reeves pointed to wage growth as a factor in the rise.

Ms Reeves said: “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.”I am fighting to put more money in the pockets of working people.

That’s why at the budget we protected their payslips with no rise in their national insurance, income tax or VAT, boosted the national living wage by £1,400 and froze fuel duty.

“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.”

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.

“Working people cannot afford Labour.”