Inflation Falling as Food and Petrol Prices Drop

Inflation fell in November partly due to supermarket price wars and a strong harvest, keeping food and petrol prices in check.

The Office for National Statistics (ONS) revealed that the consumer prices index fell to 4.8 percent in November, down from 5 percent in October.

The ONS said that the biggest contributor to the fall was down to food prices. Strong harvests eased the price of breads, cereals, potatoes and onions, whilst there were record falls in the prices of sugar, jam and confectionary products.

A fall in petrol prices of 1p a litre also contributed to the fall.

Inflation will continue to fall over coming months, predict the Bank of England, perhaps falling to around 1.5 percent by the middle of next year.

However, economists are warning that the still relatively high inflation would continue to squeeze low and middle earning households in the face of slow pay growth and worries over future employment.

Chief economist at Markit said: With consumer spending accounting for around two-thirds of all spending in the UK economy, this will act as a substantial dampener on economic growth, and the combination of weak consumer spending with public sector spending cuts and falling demand for UK exports means there is a strong chance of the UK dipping back into recession as we move into 2012.”

Ricky Steedman

Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that enabled him to help so many clients over the years.

His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.

Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.

Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.