UK inflation slowed more sharply than forecast in November, according to figures released today, boosting hopes that the Bank of England will start cutting interest rates sooner than hoped in 2024.
Data from the Office for National Statistics (ONS) showed the consumer prices index (CPI) eased to 3.9% in November, down from 4.6% the previous month, the lowest since 2021 and below City expectations of 4.3%.
In the year to November 2023:
▪️ Consumer Prices Index including owner occupiers’ housing costs rose by 4.2%, down from 4.7% in October
▪️ Consumer Prices Index (CPI) rose by 3.9%, down from 4.6% in October
— Office for National Statistics (ONS) (@ONS) December 20, 2023
The ONS said inflation was pulled down by prices of food, recreation and energy.
Core CPI inflation, which excludes energy, food and alcohol, rose by 5.1% in the 12 months to November, down from 5.7% in October, below forecasts of 5.5%.
The CPI goods annual rate slowed from 2.9% to 2.0%, while the CPI services annual rate eased from 6.6% to 6.3%.
ONS chief economist Grant Fitzner said the biggest driver in the fall was a decrease in fuel prices, alongside cooling food prices, a drop in some household goods and the cost of second-hand cars.