Tradesmen and other drivers are likely to face increased costs as a result of rising petrol prices, according to the latest inflation figures.
Today's publication of the latest Consumer Price Index (CPI) and Retail Price Index (RPI) shows that both measures rose during November. CPI increased 0.4 per cent to 1.9 per cent, while RPI rose by 0.5 per cent to 0.3 per cent.
Transport costs were the biggest drivers of this increase, according to the Office for National Statistics. This is largely due to a significant increase in petrol prices, which have been pushed up by the rising cost of crude oil.But petrol prices are at very low levels. Although the average pump price rose by 2.9 pence during November, it fell in the same month last year by a record 9.3 pence in the litre.
Crude oil prices reached an historic low in December 2008, and are gradually returning to an upward trajectory.The Bank of England has said it expects to see the increase in the rate of inflation ease towards the end of this year. Many commentators warned of the dangers of hyper-inflation when the Bank's quantitative easing scheme was first mooted, but this has so far failed to come about.
Marginal increases in inflation are of little concern to most analysts, as it is rising from a very low level. But increased petrol prices are likely to cause pain for those who rely on driving for business.
