Inflation eases, but gas and electricity prices continue to rise sharply.
With prices rising at a rate not seen in 40 years, many people are taking a keen interest in changes in the cost of living, including what prices are rising, who is being affected and what they are doing about it.
The ONS, (Office for National Statistics), has just released a snapshot of how inflation has affected prices over the last few months. The snapshot shows the price of goods and services bought in the UK rose by 9.3% in the year to November 2022, as annual inflation eased slightly from 9.6% in October.
This is according to the Consumer Prices Index, including owner occupiers' housing costs (CPIH).
The annual inflation rate has generally been rising since February 2021, but the recent easing has been driven by lower price rises in transport, particularly motor fuel.
Inflationary pressures in recent months have largely been driven by higher food and energy prices.
Electricity prices in the UK rose by 65.4% and gas prices by 128.9% in the year to November 2022, despite the introduction of the government's Energy Price Guarantee.
Prices of food and non-alcoholic beverages in the UK rose by 16.5% in the year to November 2022. This rate has risen for the last 16 consecutive months, from negative 0.6% in July 2021. Indicative modelled estimates suggest the inflation rate for food and non-alcoholic beverages would have last been higher in September 1977, when it was estimated to be 17.6%.
Prices have been rising around the world, with consumer price inflation at the highest level in several decades in most advanced economies.
Of 29 countries, 79% experienced 12-month inflation rates above 6% in September 2022; the most prevalent global inflation has been since 2008.
The war in Ukraine has put pressure on prices for food commodities, such as vegetable oil and grain. Energy prices are playing more of a role in inflation in the UK and Europe, given the higher dependency on Russian gas supplies.
The UK has seen the highest rate of energy price inflation in the G7, peaking at 57.7% in July 2022.