UK Inflation Rates Slows to 10.7%

Yesterday the ONS (The Office For National Statistics) reported that the UK inflation rate had slowed in November to 10.7%, down from 11.1% in October.

Report Summary:

The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 9.3% in the 12 months to November 2022, down from 9.6% in October.

The largest upward contributions to the annual CPIH inflation rate in November 2022 came from housing and household services (principally from electricity, gas, and other fuels), and food and non-alcoholic beverages.

On a monthly basis, CPIH rose by 0.4% in November 2022, compared with a rise of 0.6% in November 2021.

The Consumer Prices Index (CPI) rose by 10.7% in the 12 months to November 2022, down from 11.1% in October.

On a monthly basis, CPI rose by 0.4% in November 2022, compared with a rise of 0.7% in November 2021.

The largest downward contribution to the change in both the CPIH and CPI annual inflation rates between October and November 2022 came from transport, particularly motor fuels, with rising prices in restaurants, cafes and pubs making the largest, partially offsetting, upward contribution.

Jack Leslie, a senior economist at the Resolution Foundation thinktank, said:

“Inflation fell at its fastest rate in 16 months in November, driven by falling fuel price inflation and a welcome slowing in food price inflation. Britain may now be past its inflation peak, which is good news for policy makers at both the Bank and Treasury as they grapple with rising interest rates and public debt.”

“But with price rises still massively outstripping pay rises – and Britain’s poorest families facing an inflation rate of over 12% – families are still getting poorer month on month…”

Sources: ONS, Resolution Foundation