Inflation in the UK rose to 3.1% in November, taking it to the highest level in nearly six years, according to the Office for National Statistics (ONS).
But because wages are not keeping pace, workers are seeing their income continue to fall in real terms.
The increase was fuelled particularly by rises in the price of airfares and computer games. Food costs have also risen, especially fish, oil, butter and chocolate.
Meanwhile, average weekly wages are growing at just 2.2%, which is leading to a continued erosion in terms of workers’ real, take-home pay, the BBC pointed out.
In November, the Bank of England raised its key interest rate for the first time in more than a decade from 0.25% to 0.5%, which is where it remains for the time being. But with service sector costs and prices also increasing, some analysts are suggesting that another interest rate rise may be on the cards, possibly in August next year.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
Inflation in the UK rose to 3.1% in November, taking it to the highest level in nearly six years, according to the Office for National Statistics (ONS).
But because wages are not keeping pace, workers are seeing their income continue to fall in real terms.
The increase was fuelled particularly by rises in the price of airfares and computer games. Food costs have also risen, especially fish, oil, butter and chocolate.
Meanwhile, average weekly wages are growing at just 2.2%, which is leading to a continued erosion in terms of workers’ real, take-home pay, the BBC pointed out.
In November, the Bank of England raised its key interest rate for the first time in more than a decade from 0.25% to 0.5%, which is where it remains for the time being. But with service sector costs and prices also increasing, some analysts are suggesting that another interest rate rise may be on the cards, possibly in August next year.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
