UK inflation falls further than expected in November to 3.9%
The fall defied expectations, as economists had forecast inflation to decrease to 4.4% for the month, from 4.6% in October 2023.
The fall defied expectations, as economists had forecast inflation to decrease to 4.4% for the month, from 4.6% in October 2023.
BoE's Broadbent: More 'protracted and clearer' decline in inflation needed to confirm downward trend
The largest contributions to the drop came from transport, recreation and culture, and food and non-alcoholic beverages, the ONS found.
Overall, the agency discovered there were no divisions with «large offsetting upward effects» during the month, with virtually all components either decreasing or remaining at the same level of October 2023.
Core CPI has also fallen in November 2023, to 5.1%, from 5.7% in October.
Chancellor of the Exchequer Jeremy Hunt said inflation has now more than halved, with inflationary pressures being removed from the economy.
«Alongside the business tax cuts announced in the Autumn Statement, this means we are back on the path to healthy, sustainable growth. But many families are still struggling with high prices, so we will continue to prioritise measures that help with cost of living pressures,» he said.
Richard Carter, head of fixed interest research at Quilter Cheviot, added there has recently been a «sense of cautious optimism» surrounding inflation, boosted by today's figures.
«The Bank of England now certainly faces a less daunting task in steering inflation back to its 2% target next year, without necessitating a deep recession,» Carter said.
He did note the economic picture remains «complex», however, due to stagnation and subdued growth prospects for the UK, with a 0.3% contraction in GDP between September and October.
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