UK inflation fell more than expected in November as cheaper food, alcohol and clothing helped ease the pressure on household budgets, offering a glimmer of relief ahead of the crucial festive period. The Consumer Prices Index (CPI) dropped to 3.2% from 3.6%, its lowest level in eight months and a steeper fall than many economists had forecast.
The latest figures show the pace of price rises across the economy is continuing to slow, even though the overall cost of living remains significantly higher than a few years ago. The sharper‑than‑expected drop in CPI has fuelled optimism that inflation has now peaked and could pave the way for further interest rate cuts next year.
Food prices were the single biggest driver of the lower inflation reading, falling between October and November in a break from the usual pattern of pre‑Christmas increases. Overall, food prices rose 4.2% in the year to November, down from 4.9% a year earlier, with notable decreases in items such as cakes, biscuits and breakfast cereals, according to the Office for National Statistics (ONS).
Discounting in the run‑up to Black Friday also played a key role, with heavier‑than‑usual promotions on clothing and footwear, particularly women’s fashion and shoes, helping to drag inflation lower. Falls in the cost of alcohol, tobacco, restaurant meals, hotel stays, furniture and transport added further downward pressure to the overall rate.
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Retailers facing sluggish sales “had to work harder to get people through the doors”, leading to deeper November markdowns that helped keep average clothing and footwear prices unusually low, according to Hargreaves Lansdown’s Sarah Coles. Capital Economics’ chief UK economist Paul Dales described it as “particularly good news” that inflation had been pulled down by the “fun things” people enjoy at this time of year, adding that the broader picture shows disinflation is happening faster than expected, even if some prices may rebound as discounts fade.
Chancellor Rachel Reeves said families across Britain would “welcome this fall in inflation”, stressing that bringing down bills is her “top priority”, citing measures such as freezing rail fares and prescription charges and cutting £150 from average energy bills in the Budget. However, analysts caution that lower inflation does not mean prices are falling overall, with AJ Bell’s Danni Hewson warning that many households are still reeling from the “mega price hikes” of recent years despite this “most welcome” pre‑Christmas easing in price pressures.
