Inflation declared ‘the number one enemy’ as figures drop

As the UK inflation rate fell to 10.7% in November from 11.1% in October, Chancellor Jeremy Hunt has said that inflation is the “number one enemy”.

The Office for National Statistics (ONS), which revealed that petrol and second-hand car prices were falling, said that the increase in alcohol prices in restaurants, cafes, and pubs was the largest effect.

Although petrol prices have declined, the ONS stated that fuel costs are still high. In November 2022, the average petrol and diesel prices were 163.6 and 187.9 pence each litre respectively, compared to 145.8 pence per gallon in November 2021 and 149.6 in November 2021.

The demand for second-hand cars continues to be strong and the sector continues its efforts to address the global shortage of semiconductor microchips that is affecting new car production.

Last month, inflation increased from 10.1% in September, as the cost of light and heating for homes rose despite the Government’s energy price guarantee which limits wholesale charges for gas and power.

Chancellor Jeremy Hunt said: “The aftershocks of Covid-19 and (Vladimir) Putin’s weaponisation of gas mean high inflation is plaguing economies across Europe and I know families and businesses are struggling here in the UK.

“Getting inflation down so people’s wages go further is my top priority, which is why we are holding down energy bills this winter through our energy price guarantee scheme and implementing a plan to help halve inflation next year.

“I know it is tough for many right now but it is vital that we take the tough decisions needed to tackle inflation – the number one enemy that makes everyone poorer.

“If we make the wrong choices now, high prices will persist and prolong the pain for millions.”