{"id":99971,"date":"2024-12-18T10:24:13","date_gmt":"2024-12-18T10:24:13","guid":{"rendered":"https:\/\/en.econostrum.info\/?p=99971"},"modified":"2024-12-18T10:24:16","modified_gmt":"2024-12-18T10:24:16","slug":"inflation-woes-deepen-in-the-uk","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/inflation-woes-deepen-in-the-uk\/","title":{"rendered":"Inflation Woes Deepen in the UK as Costs Escalate for Everyday Items"},"content":{"rendered":"\n

This increase signals persistent economic challenges for households grappling with rising costs. Policymakers face mounting pressure<\/strong> to address inflationary trends<\/strong> without undermining broader economic stability, as public concerns about affordability grow.<\/p>\n\n\n\n

Inflation: A Hike Impacting Monthly Expenses<\/h2>\n\n\n\n

The recent inflation <\/a>spike<\/strong> stems from several key factors, including a hike in household energy prices following the lifting of the energy price cap. As reported by The Guardian<\/em><\/strong>, this adjustment significantly impacted monthly expenses, with households facing higher utility bills during an already challenging financial period.<\/p>\n\n\n\n

Other contributing factors include a seasonal rise<\/strong> in food and alcohol prices and increased petrol costs between October and November. Additionally, higher tobacco taxes, introduced at the end of October, added to inflationary pressures, further straining consumer budgets. These trends reflect a combination of external market influences and domestic policy changes.<\/p>\n\n\n\n

\n
\"\"
UK inflation reaching eight-month high<\/figcaption><\/figure>\n<\/figure>\n\n\n\n

The ONS chief economist Grant Fitzner<\/strong> also added that : \u201cInflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago. This was offset partially by air fares, which traditionally dip at this time of year, but had their largest drop in November since records began.\u201d<\/p>\n\n\n\n

Thomas Pugh, an economist at the accountancy firm RSM UK said : \u201cRising inflation will make the [Bank\u2019s rate-setting] monetary policy committee nervous. While the MPC won\u2019t want to drive the economy into stagnation, or worse an actual recession, the priority will be bearing down on inflation given that consumers inflation expectations are climbing again \u2013 even if that means a period of slower growth.\u201d<\/p>\n\n\n\n

Policy Implications and Public Response<\/h2>\n\n\n\n

The rise in prices has reignited debates on its impact on monetary policy and wages. Despite nominal pay growth outpacing cost increases by 3% in the three months leading up to October, many households continue to feel the strain. The Bank of England<\/a> faces the challenge of balancing economic growth concerns with the need to stabilize the economy<\/p>\n\n\n\n

Chancellor of the Exchequer Rachel Reeves defended the government’s recent economic actions, highlighting attempts to secure salaries and enhance the national living wage, according to The Independent<\/em><\/strong>. \u201cI am fighting to put more money in the pockets of working people. That\u2019s 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 \u00a31,400 <\/strong>and froze fuel duty.\u201d, he added.<\/p>\n\n\n\n

Nonetheless, detractors, such as Daisy Cooper,<\/strong> the treasury spokesman for the Liberal Democrats, have demanded that tax <\/a>laws be reexamined in order to better assist low-income households. As the UK heads into the festive season, these figures underscore the complexity of managing inflation while ensuring economic stability<\/strong> and affordability for consumers.<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK’s inflation rate increased to 2.6% in November, surpassing the Bank of England’s 2% target, according to data from the Office for National Statistics (ONS). This marks a rise from October’s 2.3%, with the surge attributed to higher energy bills, fuel costs, and increased taxation on tobacco products.<\/p>\n","protected":false},"author":10,"featured_media":99974,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-99971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts\/99971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/comments?post=99971"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts\/99971\/revisions"}],"predecessor-version":[{"id":99987,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts\/99971\/revisions\/99987"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/media\/99974"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/media?parent=99971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/categories?post=99971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/tags?post=99971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}