Inflation declared ‘the number one enemy’ as figures drop

As the UK inflation rate fell to 10.7% in November from 11.1% in October, Chancellor Jeremy Hunt has said that inflation is the “number one enemy”.

With petrol and second-hand car prices falling, the Office for National Statistics (ONS) revealed the drop however had been offset by tobacco products, hotels and clothing, with the biggest effect coming from price rises for alcohol in restaurants, cafes and pubs.

Whilst petrol prices have decreased, the ONS said fuel prices are still far above what they once were. The average petrol and diesel prices stood at 163.6 and 187.9 pence per litre in November 2022, compared with 145.8 and 149.6 pence per litre in November 2021.

Second-hand car prices continue to be in demand and the sector continues to tackle with a global semiconductor microchip shortage affecting new car production.

Last month, inflation increased from 10.1% in September, as the cost of light and heating for homes rose despite the Government’s energy price guarantee which limits wholesale charges for gas and power.

Chancellor Jeremy Hunt said: “The aftershocks of Covid-19 and (Vladimir) Putin’s weaponisation of gas mean high inflation is plaguing economies across Europe and I know families and businesses are struggling here in the UK.

“Getting inflation down so people’s wages go further is my top priority, which is why we are holding down energy bills this winter through our energy price guarantee scheme and implementing a plan to help halve inflation next year.

“I know it is tough for many right now but it is vital that we take the tough decisions needed to tackle inflation – the number one enemy that makes everyone poorer.

“If we make the wrong choices now, high prices will persist and prolong the pain for millions.”