Inflation soars to 10-year high as cost of raw food materials rises
The Consumer Prices Index (CPI) rose by 5.1% in the 12 months to November 2021, reaching its highest level since September 2011.
Inflation was up from 4.2% in October according to the Office for National Statistics (ONS), with supply chain issues and soaring fuel prices among the factors blamed for the increase. The rise is significantly higher than the forecast 4.7%.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.6% in the same 12-month period, driven primarily by the increasing cost of motor fuel and energy bills. Food and non-alcoholic beverages contributed 0.11 percentage points as prices rose by 1% this year, but fell by 0.2% a year ago.
In terms of producer inflation, output prices for food products saw a 0.6% increase in November, with a 12-month rate change of 4.5%. Although input prices for home food materials decreased by 0.2% month-on-month, this sector has risen by 4.4% in the last year. The cost of imported food materials showed growth of 3.2% in November.
Grant Fitzner, chief economist at the ONS, said that a rise in food prices had helped to drive inflation up in the last month, with the cost of goods produced by factories and raw material prices at their highest rate for at least 12 years.
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