London Daily

Focus on the big picture.
Friday, Nov 06, 2026

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
High Court Rules in Favor of Comprehensive Transparency Review Regarding Government Artificial Intelligence Procurement Contracts
Home Office Expands Digital Border Security and Electronic Travel Authorization Systems Across International Arrivals
Scottish Government Confirms Accelerated Investment in Offshore Renewable Energy Infrastructure Across North Sea Corridors
Department for Environment Food and Rural Affairs Implements Stricter Water Company Oversight and Environmental Penalties
National Health Service England Unveils Emergency Winter Resilience Package to Tackle Acute Accident and Emergency Backlogs
Office for National Statistics Reports Gross Domestic Product Growth Stagnated at Zero Point One Percent in Third Quarter
Chancellor of the Exchequer Outlines Comprehensive Fiscal Strategy to Stabilize National Borrowing and Public Spending
Bank of England Maintains Base Interest Rate at Five Percent Amid Persistent Service Sector Inflation Pressures
Office for National Statistics Reports Stable Consumer Confidence and Modest Retail Growth Heading into Winter
Welsh Government Launches Strategic Regional Transport Initiative to Modernize Rail Links Across South Wales
Home Office Expands Digital Border Security Controls and Electronic Travel Authorisations for Inbound Visitors
Scottish Government Announces Emergency Housing Investment Package to Tackle Urban Homelessness Crises
Northern Ireland Executive Reaches Bipartisan Consensus on Public Sector Pay Reform and Budget Allocations
Automotive Manufacturing Sector in the West Midlands Welcomes New Electric Vehicle Supply Chain Investments
Department for Energy Security and Net Zero Approves Offshore Wind Expansion in the North Sea
HM Treasury Finalizes Regulatory Framework for Stablecoins and Digital Asset Markets in London
National Health Service Unveils Comprehensive Digital Integration Strategy to Slash Hospital Waiting Lists
Bank of England Leaves Interest Rates Unchanged Amid Persistent Wage Growth and Inflationary Pressures
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
×