Inflation in the United Kingdom took a significant step down in November, offering a measure of relief to households grappling with the cost of living. Official data reveals that the Consumer Prices Index (CPI) rate fell to 3.2% last month, down from 3.6% in October.
What Drove the Inflation Drop?
The Office for National Statistics (ONS) reported that the November figure is the lowest CPI reading since March 2025 and came in below the 3.5% forecast by most economists. The decline was primarily fuelled by falling prices in two key areas: food and non-alcoholic beverages, and alcohol and tobacco.
On a monthly basis, food and drink prices decreased by 0.2%. Notable reductions were seen in the cost of bread, cereals, and dairy products, as well as sugar, jam, and chocolate. The annual inflation rate for this category eased to 4.2% in November from 4.9% the previous month.
Meanwhile, inflation for alcohol and tobacco plummeted dramatically to 4% in the year to November, down from 5.9% in the year to October. This represents the lowest rate for this category in almost three years.
Black Friday Discounts and Wider Economic Impact
The ONS also pointed to intensified Black Friday discounting in 2025 as a contributing factor. Increased promotions led to a 0.3% price drop for clothing and footwear between October and November, with significant reductions in women's clothing items like trousers and skirts.
Grant Fitzner, chief economist at the ONS, stated: "Inflation fell notably in November to its lowest annual rate since March. Lower food prices, which traditionally rise at this time of the year, were the main driver of the fall."
Kris Hamer of the British Retail Consortium noted that the fall was driven by "extensive discounting by retailers across Black Friday month," with bigger promotions on items like pork, lamb, and chicken helping to bring food inflation down.
Government and Market Response
Chancellor Rachel Reeves responded to the figures by stating that reducing household bills remains her "top priority." She highlighted recent government actions, including freezing rail fares and prescription fees and cutting £150 from average energy bills.
"I know families across Britain who are worried about bills will welcome this fall in inflation," the Chancellor said. "The Bank of England agree this will help cut prices and expect inflation to fall faster next year as a result."
The ONS's broader measure of inflation, CPIH, which includes housing costs, dipped to 3.5% in November from 3.8%. The Retail Prices Index (RPI) also eased, falling to 3.8% from 4.3% in October.
