UK inflation slows more than expected to 3.9% amid drop in price of petrol, bread and cakes
News / Wed 20th Dec 2023 at 10:29am
THE annual inflation rate, measured by the consumer prices index, fell to 3.9% from 4.6% in October, the lowest since 2021, the Office for National Statistics said.
Analysts had expected a reading of 4.4%.
Prices fell by 0.2% between October and November compared with a monthly rise of 0.4% a year earlier.
The annual inflation rate was the lowest since September 2021, and down from a recent peak of 11.1% in October 2022, which was the highest rate in over 40 years, as energy and food prices surged.
The slowdown in inflation was caused by a drop in petrol prices, while second-hand cars, maintenance and repairs, and air fares also dragged the figure down.
The average price of petrol fell by 4.1 pence per litre between October and November to 151p per litre, down from 163.6p per litre in November 2022. Diesel prices fell by 3.2p per litre this year to 159p, down from 187.9p per litre in November 2022.
Overall, motor fuel prices fell by 10.6% in the year to November, compared with a fall of 7.6% in the year to October.
ONS chief economist Grant Fitzner said:
Inflation eased again to its lowest annual rate for over two years, but prices remain substantially above what they were before the invasion of Ukraine.
The biggest driver for this month’s fall was a decrease in fuel prices after an increase at the same time last year. Food prices also pulled down inflation, as they rose much more slowly than this time last year.
There was also a price drop for a range of household goods and the cost of second-hand cars.
Factory gate prices remain little changed over the past year, while on an annual basis the change in costs that producers pay for raw materials and fuel was negative for the sixth consecutive month.Click below for more details.
The price of petrol will go up again very soon. The Yemen will see to that.