The inflation rate soars at 5.1 percent, far exceeding expectations. It is the highest level in over a decade. This fuels fears of “stagflation” and puts pressure on Bank of England rates to rise

Due to growing concern over the possibility of “stagflation”, inflation rose above 5 percent today.

The November headline CPI rate reached 5.1 percent, which was significantly more than the analysts had expected. It is also the highest since at least a decade.

The annual rate was up from 4.2 per cent in October – with fuel, clothing and food prices helping drive the increase.

This shocking figure will pressure the Bank of England into raising interest rates quickly, despite Omicron’s impact on economic recovery. 

Grant Fitzner is the Chief Economist of ONS. He stated: “A broad range of price hikes contributed to another sharp rise in inflation. This rate now stands at its highest point for over 10 years.”

According to the report, “The cost of fuel rose a lot and made average petrol prices more expensive than they have ever seen.” After falling last year, clothing costs rose again this month. Inflation also increased due to higher prices for food and second-hand vehicles.

“The cost of goods manufactured by factories has continued to rise to its highest level in at least 12 years.