The most recent statistics have shown inflation falling slightly but most UK prices are still rising fast and our inflation is now the highest in Europe. The figures for the year to end October 2011 (with end September figures in brackets) show the following:
Retail Prices Index (RPI)-5.4% (5.6%)
RPI excluding mortgage interest (RPIX)-5.6% (5.7%)
Consumer Prices Index (CPI)-5.0% (5.2%)
The modest fall in all indices came largely from falls in the cost of food (due to “significant and widespread discounting by supermarkets” and good harvests for certain produce), air fares and petrol. However, there were also significant upward pressures from increases in the price of clothing, electricity and gas.
Amongst the factors keeping the CPI annual figure high were increases in the prices of fuels and lubricants (15.4%), gas (24.1%), electricity (14.9%) and bread/cereals (6.2%). Factors affecting the RPI included increases in the prices of fuel and light (20.2%), tobacco (13.4%) and motoring (7.7%).
All of this helped the UK continue its climb up the European inflation league and, after passing out Estonia, our CPI has now become the highest in the entire European Union. Our 5% rate is head and shoulders above the EU average (3.4%) and the Eurozone average (3%). We are also well ahead of competitors like Italy (3.8%), Spain (3%), Germany (2.9%) and France (2.5%). We also have higher inflation than China (4.2%), the USA (3.5%), Japan (-0.2%) and Switzerland (-0.5%).
Who says the coalition is not capable of world-beating performances!
Update: November’s inflation figures have been published since the above article was written. They show the RPI down slightly at 5.2% and the CPI down to 4.8%.
Richard Lynch is a Dudden Hill resident. He is a retired Unite the Union official and currently conducts voluntary work on employment rights for the Brent Community Law Centre. He also acts as an accompanying representative for the GMB union.