The ONS reports that the cost of a Christmas party has increased at the quickest rate since 1991, but that the general rate of inflation has slowed, led by the price of motor fuels.
The rate of inflation decreased to 10.7% from 11.1% last month, according to official data indicating that food and the cost of a night out continue to increase in price before the holiday season.
According to the Office for National Statistics (ONS), the reduction in the core consumer prices index (CPI) was driven by falling gasoline costs.
It was the result of lowering oil prices and a significant recovery in the value of the pound against the dollar, which oil prices are pegged to.
The year-over-year increase in fuel costs was 17.2% in November, down from 22.2% in October, according to the ONS.
It was revealed that restaurants, hotels, cafes, and bars contributed the most to the increase in inflation last month, with alcoholic beverages leading the way.
The ONS also noted that the annual rate of inflation in this sector of the hospitality industry was at its highest level since 1991, at 10.2%.
The overall CPI rate was lower than anticipated by economists.
Many speculated that the peak, which reached a 41-year high in October, may now have passed.
Despite government support, household energy bills are at record highs during the first cold snap of the 2022/23 winter, indicating that the cost of the living problem is unlikely to abate substantially.
According to the ONS, energy and food prices were the primary drivers of inflation, with food prices increasing at a 16.4% annual rate.
Economists anticipate that the Bank of England will raise the Bank rate again on Thursday as part of its fight against inflation, so increasing the costs of borrowing.
The majority of experts anticipate an increase of at least 0.5 percentage points as authorities throughout the West continue to combat the price concerns posed to their economies by Russia’s war in Ukraine.
The invasion in February worsened the growing wave of price increases induced by economies reopening following the COVID disruption, as the cost of various commodities, especially food staples, extensively manufactured in both nations rose.
As a result of Russia’s historic role in delivering oil and gas, which has been reduced to a trickle as a result of sanctions regimes, the cost of making goods has increased significantly.
The Bank of England is powerless to bring these prices down, but it can intervene to reduce demand in the economy, so assisting with price declines.
It believes the nation is already in a recession, which is defined by two consecutive quarters of negative growth.
A contraction in the third quarter, July to September, is anticipated to be followed by a further decline in the current fourth quarter, October to December.
In response to the ONS price data, the Chancellor declared inflation to be the “number one adversary.”
He stated, “The repercussions of COVID-19 and (Vladimir) Putin’s weaponization of gas are wreaking havoc on the economies of Europe, and I am aware that families and businesses are hurting in the United Kingdom.”
“Reducing inflation so that people’s earnings go further is my number one priority, which is why we are keeping down energy prices this winter with our energy price guarantee scheme and adopting a strategy to help cut inflation in half next year.
“I am aware that the current economic climate is difficult for many, but we must make the difficult choices necessary to combat inflation – the number one adversary that makes everyone poorer.
If we make poor decisions today, high prices will remain and prolong the suffering of millions of people.
