20 Dec 2023
Data published by the Office for National Statistics (ONS) has revealed that the UK's inflation rate fell to 3.9% in the year to November.
The fall was bigger than the ONS had anticipated, and lower petrol prices contributed to the reduction in the inflation rate.
Price increases for bread and cakes are also easing, according to the ONS. The fall in inflation has piled pressure on the Bank of England to cut interest rates faster.
Responding to the figures, Chancellor Jeremy Hunt stated that the UK is 'back on the path to healthy, sustainable growth'. However, he also acknowledged that families are struggling with the ongoing cost-of-living crisis, and said that the government 'will continue to prioritise measures that help with cost-of-living pressures'.
Commenting on the data, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'Today's data showing the CPI rate grew at 3.9% in November, a greater slowdown than expected, is welcome confirmation that the headline rate of inflation is continuing to ease. However, prices are still rising from a very high base following multiple economic shocks and core CPI remains stubborn at 5.1%.
'Persistent inflation and high interest rates are likely to remain a barrier to business growth for some time to come. Businesses are desperate for a clear, long-term plan for growth which sets out a vision for infrastructure, skills and green innovation.'