Money (2)

The UK's rate of inflation turned positive at 0.1% in November, the Office for National Statistics (ONS) has revealed.

Many economists and analysts had predicted flat inflation, but it compares with a -0.1% rate in October.

The ONS said that transport, alcohol and tobacco were the biggest contributors to the increase. But falling clothing clothes had a downward affect on prices.

Philip Gooding, head of CPI at the ONS, said: “Although the prices of many items continue to fall, because they are falling at a slower rate than at the same time last year, the overall effect is the slight rise in headline CPI rate seen today.

“This is now the 10th month running that CPI has been at or very close to zero.”

The Bank of England's Monetary Policy Committee says it expects inflation to remain below 1% until the second half of 2016 - a factor in its decision not to raise interest rates from their record low of 0.5%.