Five questions answered on the latest inflation figures

Fruit, bread and cereals up.

The office of National Statistics today released its most recent inflation data. We answer five questions on the current state of inflation.

What is the current rate of consumer price inflation?

For November inflation remains unchanged from the previous month at 2.7 per cent.

How does this compare to wages?

Over the past year inflation has risen faster than wages with the average monthly income £22 lower than last year, according to a Bank of England survey by NMG Consulting.

What’s risen and what’s fallen in price?

Petrol prices have fallen by 3 per cent a litre on the month to £1.35 while diesel prices dropped 1.5p to £1.42 a litre.

Retail prices index (RPI) inflation, which includes housing costs, fell to 3 per cent last month, from 3.2 per cent in October.

The main rises came from food and non-alcoholic beverages prices which rose by 1.1 per cent between October and November. This covers fruit and, to a lesser extent, bread and cereals were the main contributors.

Housing and household services, such as gas and electric, rose overall by 0.6 per cent between October and November,

What’s the outlook for the future?

According to economists inflation could rise again next year to over 3 per cent as the full effect of the fuel price hikes and rising cost of fuel are factored into the figures.

UK economist at IHS Global Insight, Howard Archer, told The Telegraph: “It still looks very possible that increased energy tariffs and higher food prices could push consumer price inflation up to 3pc early in 2013 and keep it there for a while. Further utility price hikes will kick in during December and January.”

What is the government doing about inflation prices?

A Treasury spokesman told The Telegraph:

“At the Autumn Statement, the Government took more action to help households with the cost of living including a further increase in the tax-free personal allowance and cancelling the fuel duty increase that was planned for January.”

Fruit prices are a major riser. Photograph: Getty Images

Heidi Vella is a features writer for

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.