Cost of goods ‘at highest rate for 12 years’ as inflation hits 5.1%

15 December 2021, 07:51 | Updated: 15 December 2021, 07:56

Inflation has hit 5.1 per cent. Picture: Alamy

By Asher McShane

The cost of living increased to 5.1% in November from 4.2% in October, the Office for National Statistics has said - the highest level since September 2001.

Rising transport and energy costs are behind the rise, according to the ONS.

Grant Fitzner, chief economist at the ONS, said: "A wide range of price rises contributed to another steep rise in inflation, which now stands at its highest rate for over a decade.

"The price of fuel increased notably, pushing average petrol prices higher than we have seen before. Clothing costs - which increased after falling this time last year - along with price rises for food, second-hand cars and increased tobacco duty all helped drive up inflation this month.

"The costs of goods produced by factories and the price of raw materials have continued to increase significantly to their highest rate for at least 12 years."

Chancellor Rishi Sunak said: "We know how challenging rising inflation can be for families and households which is why we're spending £4.2 billion to support living standards and provide targeted measures for the most vulnerable over the winter months.

"With a resurgence of the virus, the most important thing we can do to safeguard the economic recovery is for everyone to get boosted now."