Lower clothing and food prices help inflation fall by more than expected
Last month, food, alcohol, and clothing prices dropped to their lowest level in eight months in November. The inflation rate fell to 3. 2% from 3. 6%, a larger fall than analysts expected. According to ONS chief economist Grant Fitzner, lower food prices were the key catalyst of the downturn, "with decreases seen especially for cakes, biscuits, and breakfast cereals. It comes ahead of the Bank of England's decision on interest rates on Thursday, ahead of a cut that has long been awaited.
The decline in inflation has fuelled expectations that inflation has hit a high, with this possibly paving the way for further interest rate cuts next year. The cost of cigarettes, restaurant meals, and hotel stays, furniture, and transportation were among the other items that slowed inflation. Prices are still rising across the economy on average, but there were declines in some categories between October and November. Food prices, the biggest factor in the lower inflation rate, dropped month on month, bucking a trend that is usually on the rise at this time of the year. Food prices dropped by 0. 1 percent between October and November. 2 points at a percentage point were used, while the number 4 increased by 4. The year ended at 2% in the year to November, a decrease on the 4. 9% in the year to November. Chancellor Rachel Reeves said she knew that families in the United Kingdom would welcome this drop in inflation.
Getting bills down is my top priority.
she said. The CONSumer Price Index, which is a basket of products and services that are selected by the ONS, includes items such as bread, fruit, and various pieces of clothing in the UK, as a measure of inflation. The decline in inflation sparked a sell-off in the pound, with it falling 0. 01 percent. 7% against the dollar.I froze rail fares and prescription fees and cut £150 off average energy bills at the Budget this year,
Falling food price inflation
Although food inflation has slowed, food prices are still rising - and there is a mixed picture of several common Christmas items. Beef prices are up 27. Chocolate sales have increased by 7% this year relative to this time last year, with major chocolate sales (17. 3%), milk (14. 8%) and coffee (14. 5%) according to the data. However, olive oil's price dropped by 16 percent (-16). 2%), flours (-6. 1%), and pasta (-4. 2%). Cheese, potatoes, and poultry were among other holiday staples that saw little changes in their prices. Responding to the inflation estimate, Paul Dales, chief UK economist with Capital Economics, said it was particularly encouraging news
that the rate of rises had been
shows that inflation is happening faster than expected. According to Sarah Coles, head of personal finance with Hargreaves Lansdown, black Friday discounts were higher this year, which helped average clothing and footwear prices remain low in November.dragged down by the fun activities that everyone enjoys during this time of year. After Black Friday discounts fell away, clothing and boots could also recover, according to Mr. But the overall picture
the retailer explained, so discounts were higher this year, particularly for women's clothing and shoes.Sluggish sales persuaded retailers that they had to work harder to get people through the doors,
Danni Hewson, AJ Bell's head of financial analysis, said.This is the most welcome one as Christmas gifts go,
says the news that food and alcohol inflation have dropped would be a boon to cash-strapped families.It's the time of year when people stick a few more items in their supermarket cart,
she said, and that "many households are still reeling from the effects of the mega price hikes we've seen in recent years.Lowing inflation doesn't mean the cost of living is getting cheaper,
