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Brexit has added more than £200 to the average UK household’s food bill, according to a new study by the London School of Economics.
Nathan Sterk | Getty Images News | Getty Images
LONDON – UK inflation came in slightly lower than expected at 10.7% in November, as cooling fuel prices helped ease price pressures, although higher food and energy prices continued to weigh on households and businesses.
Economists polled by Reuters had forecast annual growth in the consumer price index of 10.9%, an unexpected climb to a 41-year high of 11.1% after October. On a monthly basis, November’s increase was 0.4%, down from 2% in October and below the consensus estimate of 0.6%.
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The Office for National Statistics said the largest upward contributions came from “accommodation and household services (mainly from electricity, gas and other fuels), and food and non-alcoholic beverages.”
The biggest downward contribution this month came from “the largest, partially offset, upward contribution from rising prices in transport, particularly motor fuel, restaurants, cafes and pubs”.
The Bank of England will announce its next monetary policy on Thursday, and is widely expected to raise interest rates by 50 basis points as it tackles sky-high inflation and what policymakers say is already in its longest recession on record.
The country faces widespread industrial action over the Christmas period as workers strike to demand pay that is closer to inflation and better working conditions.
The independent Office for Budget Responsibility predicted the UK would face its biggest drop in living standards since records began as real household incomes are expected to fall by 4.3% in 2022-23.
UK Finance Minister Jeremy Hunt last month announced a £55 billion ($68 billion) fiscal plan, including tax increases and spending cuts, in an attempt to plug a significant hole in the country’s public finances.
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