The biggest rise in clothing prices in six years helped to drive the UK’s inflation rate up to 1.2% in November, up from 0.9% in October.
November’s Consumer Prices Index (CPI) inflation rate was the highest since October 2014, when it stood at 1.3%. The Office for National Statistics (ONS) said increases in the price of petrol were also responsible for the slightly higher than expected rise. Those increases were partly offset by falls in air fares.
Mike Prestwood, ONS head of inflation, said: "November’s slight rally in the value of sterling eased the inflationary pressure on businesses importing raw materials, but consumer prices continued to edge upwards, due mainly to the rising cost of clothing and fuel."
Howard Archer, chief UK economist at IHS Markit, said both clothing prices and consumer behaviour had been "particularly erratic" in recent months, which has affected the timing of discounting by retailers.
"It seems that there was less discounting of winter clothing in November and the ONS indicated that price increases were particularly marked for women’s and men’s outerwear," he said.
Tony Shiret, senior analyst at Haitong Securities, said UK weather had been more typical this year, compared with an unseasonably warm November in 2015, so clothing retailers did not need to cut their prices to shift stock: "There will be less sold on discount this year."