Lower clothing and food prices help inflation fall by more than expectedpublished at 09:05 GMT
09:05 GMT
Image source, EPA/Shutterstock
The UK’s inflation rate has fallen to 3.2% for the period covering the 12 months to November.
The size of the drop, announced by the Office for National Statistics this morning, was larger than expected and has been welcomed by both the chancellor and the prime minister.
“Good news: inflation has fallen to the lowest in 8 months,” Keir Starmer wrote on X – with the drop cementing a downward trend away from a peak that had been seen earlier this year.
Although the inflation rate has eased, it doesn’t mean overall prices are reducing – just that they are rising less quickly.
It was recent falls in food, alcohol, and clothing prices that largely contributed to the lower rate, the ONS said.
Responding to this morning’s announcement, Rachel Reeves stressed that there is “more to do” as she reiterated measures the government introduced in last month’s Budget.
Speaking for the Conservatives, shadow chancellor Mel Stride pointed out that the 3.2% figure remains higher than the Bank of England’s 2% target.
“With unemployment rising and the economy shrinking, families are paying the price for Labour’s bad choices,” he said.
Nonetheless, this leaves open the chance of an interest rate cut when the Bank of England announces its latest decision tomorrow, writes economics editor Faisal Islam.
We’ll be closing our live page for the day, but you can read more in our story about how food prices helped inflation fall by more than expected.
