Key measure of inflation rises to 1.9%

The Consumer Prices Index (CPI) – a key measure of inflation – has risen to 1.9%, according to the Office for National Statistics (ONS).

This is an increase on October’s figure of 1.5% and means that November’s rate is the highest since May this year. The inflation rate is forecast to rise further next year when the VAT discount ends.

CPI is the measure of the average price of consumer goods and services purchased by households.

The Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments, increased to 0.3% from a rate of -0.8% in October – the first time the RPI index has been positive since January this year. The rise in inflation was largely driven by higher petrol prices.

“By far the largest upward pressure affecting the change in the CPI annual rate came from transport,” said the ONS.

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