London Daily

Focus on the big picture.
Thursday, Sep 04, 2025

Inflation eases to 10.7% but the cost of a night out surges ahead of Christmas

Inflation eases to 10.7% but the cost of a night out surges ahead of Christmas

The ONS says the cost of a Christmas party has risen at its fastest rate since 1991, but charts a decline in the overall pace of inflation, led by motor fuels.

The rate of inflation eased to 10.7% from 11.1% last month, according to official figures showing that food and the cost of a night out continue to rise in price ahead of Christmas.

The Office for National Statistics (ONS) said falling motor fuel prices led the decline in the core consumer prices index (CPI) measure of inflation.

It reflected falling oil costs and a meaningful recovery in the value of the pound versus the dollar on which oil costs are pegged.

Overall, fuel prices rose by 17.2% in the year to November - down from 22.2% in the year to October, the ONS said.

It reported that the largest upwards contribution to the inflation number last month came from rising prices in restaurants, hotels, cafes and pubs - led by alcoholic drinks.

The ONS added that the annual rate of inflation in this particular sector of hospitality was running at its highest level since 1991, at 10.2%.

The overall CPI rate came in lower than economists had expected.

Many suggested we may now be past the peak, which was running at a 41-year high in October.

The cost of living crisis, however, shows little sign of easing up in any substantial way given that household energy bills are running at record levels, despite government support, amid the first cold snap of the 2022/23 winter.

The ONS said energy and food costs remained the main drivers of inflation, with food running at an annual rate of 16.4%.


Food inflation was running at 16.4% last month ahead of the core Christmas season

The Bank of England is widely expected by economists to add to the bills of borrowers on Thursday by raising Bank rate again as part of its battle against inflation.

A hike of at least 0.5 percentage points is forecast by the bulk of experts as policymakers across the West continue to bear down on the price threats posed to their economies from Russia's war in Ukraine.

The invasion in February exacerbated the rising tide of price rises caused by economies reopening after COVID disruption, as many commodities, including food staples, widely produced in both countries soared in cost.

The cost of manufacturing goods has added to the bills substantially too because of Russia's historic role in supplying oil and gas - now reduced to a trickle in comparison amid sanctions regimes.

The Bank of England can do nothing to bear down on these prices, but it can act to take demand out of the economy - helping prices fall back - through Bank rate increases.

It believes that the country is already in the grip of a recession, defined by two consecutive quarters of negative growth.

A contraction in the third quarter of the year - July to September - is expected to be followed by a further dip in the current October to December quarter.

Chancellor Jeremy Hunt responded to the ONS price figures by declaring inflation as "the number one enemy".

He said: "The aftershocks of COVID-19 and (Vladimir) Putin's weaponisation of gas mean high inflation is plaguing economies across Europe and I know families and businesses are struggling here in the UK.

"Getting inflation down so people's wages go further is my top priority, which is why we are holding down energy bills this winter through our energy price guarantee scheme and implementing a plan to help halve inflation next year.

"I know it is tough for many right now but it is vital that we take the tough decisions needed to tackle inflation - the number one enemy that makes everyone poorer.

"If we make the wrong choices now, high prices will persist and prolong the pain for millions."

Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
×