Inflation falls more than expected to 3.2% as official figures released – latest
Inflation fell more than expected last month after declines in food and tobacco costs offset increases in hotel prices.
According to figures released on Wednesday morning, Consumer Price Index (CPI) inflation fell from 3.6 percent in October to 3.2 percent in November.
This means that prices across the UK continue to rise, but at a slower rate than before. Economists said inflation had “peaked” in August, but October was a “remarkable” turning point when the CPI rate fell for the first time in five months.
“Inflation fell markedly in November to its lowest annual rate since March,” ONS chief economist Grant Fitzner said, adding that lower food, tobacco and women’s clothing prices had helped push the rate down.
“Low food prices, which traditionally rise at this time of year, were the main driver of the decline, with declines seen particularly in cakes, biscuits and breakfast cereals,” he said.
But he explained that businesses’ annual raw material costs “continue to rise.”
Reeves: ‘More to do’ after inflation falls
Rachel Reeves said there was “more to do” after the fall in food prices led to a drop in inflation in October.
The Chancellor said in a post on X that he knew families struggling to make ends meet would “welcome” the news.
He added that Labor had introduced a number of measures in the budget, including a rail fare freeze, to continue pressing for daily prices to be reduced.
Nicole Wootton-Cane17 December 2025 07:31
Low food prices have led to ‘remarkable’ fall in inflation, economist says
ONS chief economist Grant Fitzner said: “Inflation fell markedly in November to its lowest annual rate since March.
“Low food prices, which traditionally rise at this time of year, were the main driver of the decline, with particular declines seen in cakes, biscuits and breakfast cereals.
“Tobacco prices also helped push the rate down, with prices falling slightly this month after a big increase last year. The drop in women’s clothing prices was another downward factor.
“While the increase in the cost of goods leaving factories slowed down due to the impact of low food inflation, the annual cost of raw materials for businesses continued to increase.”
Nicole Wootton-Cane17 December 2025 07:25
What does falling inflation mean?
The Office for National Statistics (ONS) reported a fall in inflation this morning.
This figure decreased to 3.2 percent from 3.6 percent in October.
This means that while prices are still rising, they are rising more slowly than at the beginning of this year.
Sanjay Raja, Deutsche Bank’s chief UK economist, said we saw a “peak” in inflation in August but the figures represented a downward trend.
“Autumn Budget measures lowered our inflation forecasts for next year, particularly in the spring. Low energy prices also helped lower our forecasts,” he said.
“We see the CPI getting quite close to the target starting from spring next year, then returning to the target in a more sustainable way in 2027.”
Nicole Wootton-Cane17 December 2025 07:18
ONS economists say lower food and tobacco prices are contributing to the decline
Low prices on items such as food and tobacco contributed to last month’s falling inflation, economists said.
Grant Fitzner, chief economist at the Office for National Statistics, said declines were seen particularly in cakes, biscuits and breakfast cereals.
Nicole Wootton-Cane17 December 2025 07:09
