UK Inflation Eases to 3.2% in November on Cheaper Food

UK inflation cooled to 3.2% in November, the lowest reading in eight months, helped by cheaper food and a range of discounts on consumer goods. The Office for National Statistics (ONS) says the slowdown could support expectations for potential interest-rate cuts by the Bank of England next year.

What drove the drop

The biggest contributor to the lower rate was a fall in food prices. Between October and November, food costs ticked down by 0.2 percentage points month-on-month, while the annual rate for food slowed to 4.2% in November from 4.9% in October. Other items that eased inflation included tobacco, restaurant meals, hotel stays, furniture, and transport costs, according to the ONS.

Clothing, energy and holidays

Discounts during Black Friday helped keep clothing and footwear prices down in November. Analysts noted retailers pushed deeper sales to attract shoppers. Energy-related costs were also a factor, with government measures to lower energy bills remaining in effect, contributing to the broader slowdown in prices.

Market reaction and policy outlook

The inflation data prompted a market reaction, with the pound slipping about 0.7% against the U.S. dollar after the release. Traders expect the Bank of England to consider cutting interest rates if the trend of slowing inflation continues.

What governments say

Chancellor Rachel Reeves welcomed the fall in inflation and highlighted measures aimed at easing living costs, including freezing rail fares and cutting average energy bills by about £150 in this year's Budget.

Expert reaction

Expert comment: Economists say the slower pace is a positive sign that inflation may have peaked, but they caution that many households still face high living costs from previous price spikes.

Key takeaways

In brief, November saw inflation ease to 3.2%, led largely by cheaper food and stronger discounts on consumer goods. While this is welcome news for households, it does not mean living costs have fully fallen. The trend, if sustained, could open the door to further rate cuts from the Bank of England in the coming months.

Key insight: Inflation in the UK cooled in November, driven by cheaper food and retailer discounts, a development that may support further rate cuts. Source

Discover the latest news and current events in Economics as of 19-12-2025. The article titled " UK Inflation Eases to 3.2% in November on Cheaper Food " provides you with the most relevant and reliable information in the Economics field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.

The information in " UK Inflation Eases to 3.2% in November on Cheaper Food " helps you make better-informed decisions within the Economics category. Our news articles are continuously updated and adhere to journalistic standards.