Inflation dips to 10.7% in November but remains near 40-year high - how this impacts your money

dailyrecord.co.uk:

Inflation has fallen to 10.7 percent according to the Office for National Statistics, down slightly from October's 11.1 percent, but still near a 40-year high.

Rates were lowered this month in-part due to falling fuel prices - which reflects lower oil costs. However the cost of food and energy rates remain at record levels.The same goes for alcoholic drinks in restaurants, hotels, cafes and pubs, which have all become more expensive in the weeks leading up to Christmas, reports the Mirror Online.Grant Fitzner, chief economist at the Office for National Statistics told BBC Radio 4's Today programme: "Some may be calling this a peak.

It is, I think, too early."He added: "We’ve only seen one fall from a 40 year high, so let’s wait a few months."Chancellor Jeremy Hunt said: "Getting inflation down so people’s wages go further is my top priority, which is why we are holding down energy bills this winter through our Energy Price Guarantee Scheme and implementing a plan to help halve inflation next year."I know it is tough for many right now, but it is vital that we take the tough decisions needed to tackle inflation - the number one enemy that makes everyone poorer."If we make the wrong choices now, high prices will persist and prolong the pain for millions."Inflation figures, which are released monthly by the Office for National Statistics (ONS) through the Consumer Price Index, show how the price of products and goods have increased.If something would cost £1 a year ago and now costs £1.02 today, that rate of inflation would be 2 percent.When prices increase, your money doesn't stretch as far, increasing the cost of living.