Advertisement
CHRISTMAS SPECIAL: Just £9.99 for the next 8 weeks
SUBSCRIBE
Social Justice

Prices rise at highest rate in months: 'Families are still struggling with the cost of living'

Chancellor Rachel Reeves said she will keep 'fighting to put more money in the pockets of working people' following news of inflation reaching 2.6% in November

Rachel Reeves

Chancellor Rachel Reeves said she introduced measures in her budget to alleviate the pressure of the cost of living. Image: HM Treasury/ Flickr/ Kirsty O'Connor

Britain still faces a challenge in “squeezing inflation out of the economy”, experts have warned, as prices have risen at the highest rate seen in eight months.

Inflation increased to 2.6% in November, a rise from 2.3% in October. This is the highest inflation rate since March and the first consecutive rise in two years.

Economists have said that this is “no immediate cause for concern” and was in line with market forecasts – but it does mean it’s once again higher than the Bank of England‘s target rate of 2%.

It means that prices overall are 2.6% higher than they were in the previous November.

As millions of people struggle to cope in the aftermath of the cost of living crisis, even small price rises may come as a blow to bank accounts. Many households are facing debt and have little left to sacrifice.

The largest upward contributions came from transport costs, and housing and household services.

Advertisement
Advertisement

Food prices increased by 4.4% in the 12 months up to November 2024, up from 4.1% in November.

This will take a particular toll on low-income households who, on average, spend a greater proportion of their income on essentials like food.

Chancellor Rachel Reeves said she recognised “families are still struggling with the cost of living” and added that she is “fighting to put more money in the pockets of working people”.

The Office for Budget Responsibility predicted that the budget was likely to pick up to 2.6% in 2025 because of the measures announced by Reeves in her autumn budget.

However, the chancellor said that she protected people’s payslips with no rise in national insurance, income tax or VAT, a boost in the national living wage and a freeze to fuel duty.

James Smith, research director at the Resolution Foundation, said: “Britain’s run of disappointing economic data has continued with a second month in a row of chunky inflation rises.

Advertisement

“With headline and core inflation rising over the past month, while domestically driven services inflation is proving stickier than expected, this latest data shows the challenge Britain faces in squeezing inflation out of the economy.”

Annual wage growth accelerated to 5.2% in October, outstripping inflation – which should mean that working households are better able to cope with rising prices.

But there are concerns that Labour has been too focused on “working” households, while people with health conditions and disabilities rely on benefits to survive.

Benefits are only increasing by 1.7% in March, in line with September’s rate of inflation.

The growth in the economy as a whole is “weaker-than-expected”, which experts suggest is driven by high interest rates imposed by the Bank of England to keep inflation down.

Its next decision over interest rates will be made on Thursday, with economists predicting that it will be kept at 4.75%.

Advertisement

Dr George Dibb, associate director for economic policy at IPPR, said: “Today’s higher inflation figures were expected and pose no immediate cause for concern. The rise reflects anticipated price changes and aligns with the Bank of England’s forecasts, which predict a modest increase over the next year before easing in 2026. 

“The real concern is the UK’s weaker-than-expected growth, now lagging behind the Bank’s own projections. High interest rates are stifling growth, as we’ve repeatedly warned, and this slowdown is driven by tight monetary policy—not the new government’s policies. The Bank of England must act decisively and cut rates tomorrow to get the UK economy back on track.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. This Christmas, you can make a lasting change on a vendor’s life. Buy a magazine from your local vendor in the street every week. If you can’t reach them, buy a Vendor Support Kit.

Advertisement

Buy a Big Issue Vendor Support Kit

This Christmas, give a Big Issue vendor the tools to keep themselves warm, dry, fed, earning and progressing.

Recommended for you

View all
Millions of pensioners in 'desperate need' lose winter fuel payment: 'We fear what will happen'
pensioner with his head in his hands
Winter fuel payment

Millions of pensioners in 'desperate need' lose winter fuel payment: 'We fear what will happen'

Universal credit advance payment: Bridging the five-week wait
a person handling £20 notes in front of a cash machine / universal credit advance payment
Benefits

Universal credit advance payment: Bridging the five-week wait

DWP wants to reform benefits to cut costs, not help disabled people into work, court hears
dwp's liz kendall
Disability benefits

DWP wants to reform benefits to cut costs, not help disabled people into work, court hears

10 acts of violence and far-right 'activism' police ignored ahead of summer riots
protesters surround a police van
UK riots

10 acts of violence and far-right 'activism' police ignored ahead of summer riots

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know