Money Wellness
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category iconcost of living
calendar icon20 Dec 2023

Inflation falls more than expected

The rate prices are rising in the UK slowed more than expected last month, according to official data.

Figures from the Office for National Statistics show inflation fell from 4.6% in October to 3.9% in November.

Experts had been predicting a smaller drop to 4.4%.

Fuel and food drive drop

A big factor in the fall was a dip in fuel prices – both diesel and petrol.

Slowing price rises for food, including milk, butter and pasta, also contributed to the drop.

Still above target

Despite the steeper than expected drop, at 3.9%, inflation is still just under double the Bank of England’s 2% target.

This is why the central bank has said it’s premature to start talking about cutting interest rates.

It held rates at a 15-year high earlier this month and experts predict they’re unlikely to come down before next summer.

High interest rates make borrowing more expensive but can help reduce inflation.

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

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