Updated December 22nd, 2023 at 10:43 IST
UK inflation rate falls to 3.9% in November
Core CPI-which excludes volatile food, energy, alcohol and tobacco prices — came in at an annual 5.1 per cent, well below a 5.6 per cent forecast.
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British annual consumer price inflation fell to 3.9 per cent in November from 4.6 per cent in October, official data showed on Wednesday. UK’s November inflation was lesser than what economists estimated. A Reuters poll of economists had pointed to a reading of 4.4 per cent. At 3.9 per cent, the inflation is lowest since September 2021.
Headline CPI fell by 0.2 per cent month on month, compared to a consensus forecast of a 0.1 per cent increase. On the other hand, core CPI-which excludes volatile food, energy, alcohol and tobacco prices — came in at an annual 5.1 per cent, well below a 5.6 per cent forecast. The Bank of England last week kept the hawkish tone intact and kept the main interest rate unchanged at 5.25 per cent. The Monetary Policy Committee reiterated that policy is “likely to need to be restrictive for an extended period of time.”
According to the Office for National Statistics, the Consumer Prices Index, including owner occupiers’ housing costs (CPIH), increased by 4.2 per cent year-on-year in November versus 4.7 per cent in October. Similarly, the annual inflation rate for food & non-alcoholic beverages eased from 10.1 per cent to 9.2 per cent in November. On the flip side, the services remained the driving force behind inflation. The CPIH all services index increased by 6.0 per cent year-on-year compared with 6.2 per cent in October.
Published December 20th, 2023 at 14:57 IST