Inflation rises
Dec 15 2009
Inflation rises to 1.9 per cent
Both measures of inflation are rising faster than expected, according to figures from the Office for National Statistics (ONS).
The consumer prices index for November (CPI) rose faster than expected to 1.9 per cent, up from 1.5 per cent in October. Meanwhile, the retail prices index (RPI) ebbed back into positive territory at 0.3 per cent, compared with minus 0.8 per cent in October, according to figures from the Office for National Statistics (ONS).
David Kern, chief economist at the British Chambers of Commerce, says: ‘These figures are marginally higher than expected but are not really surprising. The Bank of England and the Treasury had forecast that inflation would accelerate over the next few months, probably approaching three per cent before falling again.
According to think tank the Centre for Economics Business and Research, the pick-up in annual inflation towards the end of 2009 was inevitable due to a steep drop in prices a year earlier. ‘We expect inflation to peak above 3.0 per cent in January as the VAT cut is reversed but thereafter inflation should start to fall back towards a steadier level,’ it says.
The ONS said the largest upward pressure affecting the change came from transport.
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