Inflation drops sharply to 3.2% in November after food prices fall

Inflation fell sharply last month as lower food prices helped to ease the cost of living for households across the UK, new official figures showed.

The rate of Consumer Prices Index (CPI) inflation fell to 3.2% in November, from 3.6% in October, the Office for National Statistics (ONS) said.

This marks the lowest CPI rate since March this year and a bigger drop than the 3.5% that most economists were expecting for the month.

It means that prices are still rising across the country, but at a slower rate than they were before.

Food and drinks, as well as alcohol and tobacco, were the biggest factors pulling on the overall rate of inflation last month.

On a monthly basis, food and non-alcoholic drink prices fell by 0.2% in November, with the biggest drops coming from bread and cereals, as well as declines in dairy, sugar, jam and chocolate.

The annual rate of inflation for the category fell to 4.2% in November, from 4.9% in October.

Alcohol and tobacco inflation saw a sharp drop to 4% in the year to November, from 5.9% in the year to October – marking the lowest rate in nearly three years.

The ONS also pointed to more Black Friday discounting on clothes and shoes this year, which helped bring down prices by 0.3% between October and November.

The biggest falls came from women’s clothing across a range of items, including trousers and skirts.

Chancellor Rachel Reeves said lowering household bills was a “top priority” after the latest inflation data was released.

She said: “I know families across Britain who are worried about bills will welcome this fall in inflation.

“Getting bills down is my top priority. That is why I froze rail fares and prescription fees and cut £150 off average energy bills at the Budget this year.

“The Bank of England agree this will help cut prices and expect inflation to fall faster next year as a result.”

ONS chief economist Grant Fitzner said: “Inflation fell notably in November to its lowest annual rate since March.

“Lower food prices, which traditionally rise at this time of the year, were the main driver of the fall, with decreases seen, particularly for cakes, biscuits and breakfast cereals.

“Tobacco prices also helped pull the rate down, with prices easing slightly this month after a large rise a year ago. The fall in the price of women’s clothing was another downward driver.

“The increase in the cost of goods leaving factories slowed, driven by lower food inflation, while the annual cost of raw materials for businesses continued to rise.”