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| Inflation down more than expected as fuel prices drop | Inflation down more than expected as fuel prices drop |
| (about 1 hour later) | |
| UK inflation fell by more than expected last month, driven largely by a drop in fuel prices. | UK inflation fell by more than expected last month, driven largely by a drop in fuel prices. |
| Prices rose by 3.9% in the year to November, down from 4.6% in October. | Prices rose by 3.9% in the year to November, down from 4.6% in October. |
| Slowing price rises for food, including staples such as pasta, milk and butter, as well as for household goods were also behind the fall. | |
| But while inflation is now a well down from its peak in 2022, it is still almost double the Bank of England's 2% target. | |
| Falling inflation does not mean most goods and services are cheaper, but rather prices are rising less quickly. | |
| Grant Fitzner, chief economist at the Office for National Statistics (ONS), said that while UK inflation had eased again, "prices remain substantially above" what they were before Russia's invasion of Ukraine. | Grant Fitzner, chief economist at the Office for National Statistics (ONS), said that while UK inflation had eased again, "prices remain substantially above" what they were before Russia's invasion of Ukraine. |
| A major impact following the outbreak of war was that global oil prices soared in 2022, pushing petrol and diesel prices to record levels. | |
| What a falling inflation rate means for your finances | |
| Is Sunak keeping his five key promises? | |
| However, oil prices have fallen back and pump prices are now at their lowest level for more than two years, according to the RAC motoring group. | |
| A litre of unleaded costs about £1.43 on average, a price last seen at UK forecourts in October 2021. | A litre of unleaded costs about £1.43 on average, a price last seen at UK forecourts in October 2021. |
| The ONS also said food price inflation continued to slow in November, with the price of bread and cereals falling. | |
| However, food is still 9% more expensive in the UK than it was a year ago. | |
| While the cost-of-living crisis is starting to ease, many households will not feel better off, especially when it comes to energy bills and borrowing costs. | |
| Despite gas and electricity prices being lower than last year, most households will actually pay more for energy this winter than in 2022 because government support for bills is no longer in place. | |
| Meanwhile, the Bank of England has put up interest rates 14 times since December 2021 to try to slow price rises. Rates are now 5.25%, a 15-year high, leading to higher borrowing costs for mortgages but also higher savings rates. | |
| The Bank's Governor, Andrew Bailey, has ruled out cutting rates anytime soon, despite weakening economic growth. | |
| Chancellor Jeremy Hunt said the latest inflation figures set the UK "back on the path to healthy, sustainable [economic] growth", but that the government would "continue to prioritise measures that help with cost of living pressures". | |
| Rachel Reeves, Labour's shadow chancellor, said "prices are still going up in the shops, household bills are rising and more than a million people face higher mortgage payments next year after the Conservatives crashed the economy". | |
| UK inflation remains higher than in other countries including the US, France and Germany but the gap is narrowing. | |
| The fall to 3.9% in November puts the UK on level pegging with France - but ahead of the EU's average rate of 3.1% and the US's 2.1%. | |
| Related Topics | Related Topics |
| Inflation | Inflation |
| Cost of living | Cost of living |
| UK economy | UK economy |