Lower clothing and food prices help inflation fall by more than expected

"Getty Images Falls in food, alcohol, and clothing prices last month helped drive inflation to its lowest level in eight months in November. The inflation rate fell to 3.2% from 3.6%, a larger fall than analysts expected. Lower food prices were the main driver of the fall, "with decreases seen particularly for cakes, biscuits, and breakfast cereals", according to Office for National Statistics (ONS) chief economist Grant Fitzner."

"Other items which also pushed down inflation were the cost of tobacco, restaurant meals and hotel stays, furniture, and transport. Prices are still rising on average across the economy, but there were decreases in some items between October and November. Food prices, which were the biggest driver of the lower inflation figure, fell month on month - bucking a trend for normally rising at this time of the year."

"Chancellor Rachel Reeves said she knew that families across Britain "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," she said. Inflation in the UK is a measure of the Consumer Prices Index, which is a basket of goods and services selected by the ONS that includes things like bread, fruit, and different items of clothing."

Annual inflation in the UK fell to 3.2% in November from 3.6% in October. Falls in food, alcohol, and clothing prices were major contributors, with food decreases notably for cakes, biscuits and breakfast cereals. Food prices fell 0.2 percentage points month-on-month and rose 4.2% in the year to November, down from 4.9% previously. Additional downward pressure came from tobacco, restaurant meals, hotel stays, furniture and transport. Prices broadly remain higher on average across the economy, but several items saw month-on-month decreases. The lower inflation rate precedes an expected Bank of England interest-rate decision and may support future rate cuts.

Read at www.bbc.com