CORPORATE profiteering is driving inflation back up, Unite warned today after official data revealed an increase for a second month. 

Figures from the Office for National Statistics (ONS) show that Consumer Prices Index (CPI) inflation rose for a second month to 2.6 per cent in November, from 2.3 per cent — above the Bank of England’s 2 per cent target.

The Retail Prices Index rate of inflation rose to 3.6 per cent last month from 3.4 per cent in October.

New inflation figures have fuelled expectations that the Bank’s policymakers will opt to keep interest rates on hold at 4.75 per cent.

Unite general secretary Sharon Graham said: “Once again inflation is creeping back up and we know why.

“Time and time again, Unite has raised the alarm on corporate profiteering.

“Our recent study found that average profit margins have soared compared to the pre-pandemic period. 

“National Grid reported profits of £4.8 billion this year.

“If the government was serious about controlling inflation, instead of releasing complex plans to support private-sector profits in our energy sector, it would take decisive action and bring the National Grid back into public ownership.”

The TUC stressed that Labour’s plan to invest in the “broken economy is important – but they can’t do it on their own.”

Economists backed the call saying the “real concern” is Britain’s lower-than-expected growth.

TUC general secretary Paul Nowak warned families and businesses remain under pressure from the steep increase in the cost of living.

“The latest GDP and employment figures show the economy is still fragile, and the priority must be turning this around,” he said.

“So, it’s vital the Bank of England keeps moving and makes another interest rate cut tomorrow.”

Institute for Public Policy Research’s associate director for economic policy Dr George Dibb said: “Today’s higher inflation figures were expected and pose no immediate cause for concern.

“The rise reflects anticipated price changes and aligns with the Bank of England’s forecasts, which predict a modest increase over the next year before easing in 2026. 

“The real concern is the UK’s weaker-than-expected growth, now lagging behind the Bank’s own projections.

“High interest rates are stifling growth, as we’ve repeatedly warned, and this slowdown is driven by tight monetary policy — not the new government’s policies.

“The Bank of England must act decisively and cut rates tomorrow to get the UK economy back on track.” 

ONS’s chief economist Grant Fitzner said the rise was due to higher motor fuel and clothing prices.

Chancellor Rachel Reeves said there is “more to do” to combat cost-of-living pressures.

“I know families are still struggling with the cost of living and today’s figures are a reminder that for too long the economy has not worked for working people,” she added.

It comes a day after ONS figures showed wage growth rose by more than expected in the three months to October.

Tax-raising measures laid out in the government’s autumn budget could see inflation rise further over the coming months, further steering the Bank to hold rates, experts said.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said the latest data could be “the calm before the storm, as higher employer National Insurance contributions and a bigger minimum wage from April push up employment costs for supermarkets — who may then pass it on to customers.”

Myron Jobson, senior personal finance analyst for Interactive Investor, added: “This latest inflation reading highlights that the fight against rising prices is far from over.”