Starmer wants growth ‘to be felt in the pockets of working people’; US Federal Reserve widely expected to cut interest rates by a quarter point

Here’s more detail from the inflation snapshot.

Clothes retailers offered fewer discounts than last November, when they cut prices due to mild weather.

Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago.

This was partially offset by air fares, which traditionally dip at this time of year, but saw their largest drop in November since records began at the start of the century.

We think there is a good chance airfares will rebound very strongly in December.

Looking ahead, we expect headline inflation to reach 3.1% in April 2025 and stay at or above 3.0% until October 2025. We expect core goods price rises to tick up, reflecting somewhat stronger cost growth. Motor fuels inflation will boosted by base effects, and duty hikes will raise tobacco inflation. Inflation rising above the MPC’s target is one reason why we expect rate-setters to cut interest rates gradually.

The big declines in inflation are behind us. Next year inflation is likely to run closer to 3.0% than to its 2.0% target. Wage growth of over 5.0% and a surge in government spending could keep inflation higher for longer.