What has kept inflation high? The Office for National Statistics blames the rising cost of food and home energy bills, which offset falling petrol prices in November to leave the annual rate of inflation unchanged.
Living standards have been falling consistently over the past twelve months, as inflation has run well above the rate of pay increases, which the latest labour market data showed averaging at less than 2%.
Measured on the retail prices index (RPI), which includes mortgage interest payments, the inflation rate was 3% in November, down from 3.2% in October.
The ONS publish two measures of inflation. The consumer price index (CPI) measure of inflation which we have quoted above. In September last year, when the CPI stood at 5.2%, it had never been higher in recorded history.
The second measure is the retail price index (RPI) which stands at 2.9% for August, down from 3.2% in July. We have also added in pay data - and you can see how inflation has been racing ahead of average earnings. Even with the falls today, people's wages are not increasing as fast as the cost of living.
There are some important differences between the two ways the ONS measures inflation. The government prefers the consumer price index, which also includes services, housing, electricity, food, and transportation, but the retail price index covers more items. The RPI includes housing costs and is used for many pay negotiations and used to be used for pension payments. We've included both here - just click on the links on the spreadsheet. You can get the full list of items in the inflation basket here.
If tyou want to see how different elements of inflation have changed, check out this interactive data explorer from Timetric.
Timetric inflation data explorer. Click image to see the data
We have gathered all the data for inflation since June 1948. Let us know what you can do with this data.
To find out more about how RPI and CPI differ, explore this set of interactive charts. The graphics show a breakdown of the different measures and components of inflation, and you can compare rates between countries.