// The latest Consumer Price Index shows the rate of inflation has dropped to 10.7%
// Clothing and footwear fell to 7.5% from last month’s 8.5%.
There is a small glimmer of hope for retailers and consumers as the rate of inflation has dipped slightly in November to 10.7%.
While the latest Consumer Price Index (CPI) figure has fallen from October’s 40-year high of 11.1%, inflation remains at an all time high.
The Office for National Statistics (ONS) reported the rate of inflation for clothing and footwear dropped to 7.5% in November from October’s 8.5%.
However, prices slightly increased by 0.1% between October and November this year, compared to 1.1% recorded last year.
The largest CPI inflation rates came from transport and motor fuels as well as increasing prices in restaurants, cafes and pubs.
ONS chief economist Grant Fitzner said: “Although still at historically high levels, annual inflation eased slightly in November.
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“Prices are still rising, but by less than this time last year, with the most notable example of this being motor fuels.
“Tobacco and clothing prices also rose, but again by less than we saw this time last year.
“This was partially offset by prices in restaurants, cafes and pubs, which went up this year compared to falling a year ago.”
Food inflation continued to rise from October’s 16.2% to 16.4% this month.
There is “little sign that inflation will ease significantly soon” as the war in Ukraine continues to place pressure on energy and food prices, British Retail Consortium chief executive Helen Dickinson said.
“It will undoubtedly be a challenging Christmas period for many households across the UK.
“Not only are the costs of food and gifts up on last year, but bills are up 27% too.
“To combat inflation, retailers are investing hundreds of millions into lower prices for the future, as well as finding ways to keep the cost of Christmas down for their customers.
“This includes freezing the price of many essentials, offering discounts to vulnerable groups, raising pay for their own staff, and expanding their value ranges.”
Grocery retailers are currently in the midst of a traditional Christmas price wars as they battle it out to offer the cheapest dinner by dropping the price of turkeys to under xx and offering veg for 19p.
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