Inflation rises to 3.1%

Britain’s cost of living squeeze has intensified after the annual rate of inflation hit a near six-year high of 3.1% in November.Figures from the Office for National Statistics (ONS) showed dearer computer games and a smaller fall in airfares than a year ago were two factors behind the unexpected increase from 3% in October. 

 This puts consumer prices for November up 0.1 percentage points from October's consumer price index (CPI) rate of 3 percent, which was itself a five-and-a-half year high.The new figures are in line with the Bank of England's (BoE)expectations that inflation would peak at just over 3.0 percent before the end of this year.

"It would be helpful for economic growth going forward if inflation is close to peaking," Lee Hardman, currency analyst at MUFG, said in an email note."The largest upward contribution to the rate change came from airfares, which fell between October and November, but by less than a year ago," the ONS wrote. The spike in inflation also responded in part to a fall in the pound over several weeks of tumultuous Brexit talks."CPI inflation edged above 3 percent for the first time in nearly six years with the price of computer games rising and air fares falling more slowly than this time last year. These upward pressures were partially offset by falling costs of computer equipment," Mike Prestwood, head of inflation for ONS, said.