{"id":319965,"date":"2025-12-17T00:22:09","date_gmt":"2025-12-17T00:22:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/319965\/"},"modified":"2025-12-17T00:22:09","modified_gmt":"2025-12-17T00:22:09","slug":"inflation-set-to-ease-as-falling-food-prices-offset-hotel-costs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/319965\/","title":{"rendered":"Inflation set to ease as falling food prices offset hotel costs"},"content":{"rendered":"

UK inflation is expected to have eased again last month, reinforcing signs that price pressures across the economy are gradually moderating.<\/p>\n

Economists widely forecast that inflation fell to 3.5 per cent in November.<\/p>\n

That would mark a slight decline from October\u2019s reading of 3.6 per cent.<\/p>\n

If confirmed, the fall would indicate that while prices are still rising, the pace of increases is continuing to slow.<\/p>\n

The expected drop in the Consumer Prices Index (CPI) follows several months in which inflation proved stubbornly persistent.<\/p>\n

October marked a turning point after inflation had remained elevated throughout the summer.<\/p>\n

The October reading was the first decline in CPI since May.<\/p>\n

Analysts believe November\u2019s cooling was driven primarily by falling supermarket prices.<\/p>\n

Lower food costs are thought to have offset higher prices in other areas of the economy.<\/p>\n

Accommodation costs, particularly hotel prices, are expected to have risen sharply during the month.<\/p>\n

\"Rachel<\/p>\n

UK inflation is expected to have eased again last month<\/p>\n

| <\/p>\n

GETTY<\/p>\n

Despite this, economists believe the decline in grocery prices was sufficient to pull the headline inflation rate lower.<\/p>\n

Official data for October showed food inflation accelerating at a notable pace.<\/p>\n

Everyday items including bread, cereals, milk and coffee all rose in price during that period.<\/p>\n

Those increases placed additional strain on household budgets already under pressure from higher borrowing costs.<\/p>\n

However, analysts say food prices retreated in November.<\/p>\n

That shift is expected to have provided some relief for consumers.<\/p>\n

\"\\u200bRachel<\/p>\n

Rachel Reeves has targeted cutting inflation<\/p>\n

| GETTY<\/p>\n

Economists at Pantheon Macroeconomics said falling food prices played a key role in the inflation outlook.<\/p>\n

Rob Wood and Elliott Jordan-Doak, economists at the firm, said: “Food prices falling month-on-month will help drag inflation down in November.”<\/p>\n

They said the drop in supermarket costs should compensate for what they described as a “chunky hotel price rise”.<\/p>\n

The pair also pointed to ongoing price pressures in the services sector.<\/p>\n

They said inflation across catering, leisure and hospitality remained elevated throughout November.<\/p>\n

Mr Wood and Mr Jordan-Doak attributed this persistence to labour costs.<\/p>\n

They said: “Continued strong labour costs in part due to payroll tax hikes boost prices.”<\/p>\n

Rising wage bills have been a particular challenge for hospitality businesses.<\/p>\n

Many firms have passed higher employment costs on to customers.<\/p>\n

As a result, prices in pubs, restaurants and hotels have remained high even as goods inflation eases.<\/p>\n

This divergence highlights the uneven nature of inflation across the economy.<\/p>\n

While goods prices appear to be cooling, services inflation continues to exert upward pressure.<\/p>\n

Sanjay Raja, chief UK economist at Deutsche Bank, also expects inflation to fall to 3.5 per cent in November.<\/p>\n

“After peaking in August, we expect inflation to continue on its downward trajectory.”<\/p>\n

He said a combination of policy decisions and external factors are helping to ease price pressures.<\/p>\n

Mr Raja pointed to measures announced in the Autumn Budget as a contributing factor.<\/p>\n

He also cited lower energy costs as supporting the outlook for inflation.<\/p>\n

Those developments have led economists to revise down their projections for the coming year.<\/p>\n

“We see CPI landing pretty close to target from spring next year.”<\/p>\n

He added: “Before more sustainably returning to target in 2027.”<\/p>\n

The Bank of England has a mandate to keep inflation at two per cent.<\/p>\n

Inflation has remained above that level for more than two years.<\/p>\n

Fresh CPI data will be published one day before the Bank\u2019s next interest rate decision.<\/p>\n

The timing has increased scrutiny on the figures from policymakers and financial markets.<\/p>\n

Most economists now expect the Bank to cut interest rates before Christmas.<\/p>\n

\"Bank<\/p>\n

The Bank of England credited Rachel Reeves’s budget for forecasted inflation slowdown<\/p>\n

| GETTY <\/p>\n

That expectation reflects a broader slowdown in the economy.<\/p>\n

Price growth is easing while joblessness is rising.<\/p>\n

Economic output has also shown little momentum in recent months.<\/p>\n

Together, those factors have strengthened the case for monetary easing.<\/p>\n

Economists say a rate cut would aim to support growth without reigniting inflation.<\/p>\n

The forthcoming data is expected to play a key role in shaping the Bank\u2019s next move.<\/p>\n","protected":false},"excerpt":{"rendered":"UK inflation is expected to have eased again last month, reinforcing signs that price pressures across the economy…\n","protected":false},"author":2,"featured_media":319966,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,1431,2222,229,1445,56,44208,54,55],"class_list":["post-319965","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-inflation","tag-money","tag-politics","tag-rachel-reeves","tag-uk","tag-uk-politics","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/319965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=319965"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/319965\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/319966"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=319965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=319965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=319965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}