UK Inflation Rate Falls More than Expected

2025-12-17 07:13 By Joana Taborda 1 min. read

The annual inflation rate in the UK slowed to 3.2% in November 2025, the lowest in eight months, compared to 3.6% in October and forecasts of 3.5%.

The figure is also lower than the Bank of England's prediction of 3.4%.

The largest downward contribution came from prices for food and non-alcoholic beverages (4.2% vs 4.9%), particularly bread and cereals, where the prices of products such as cakes, biscuits and breakfast cereals fell this year.

Prices also slowed for alcohol and tobacco (4% vs 5.9%), reaching the lowest since December 2022; transport (3.7% vs 3.8%); and housing and utilities (5.1% vs 5.2%), including actual rents for housing (3.8% vs 4.1%).

Services inflation eased to 4.4% from 4.5%, below the central bank forecasts of 4.5%.

In addition, cost fell for clothing and footwear (-0.6% vs 0.3%), mostly women's clothing.

Prices for recreation and culture rose 2.9%, the same as in October.

Compared to the previous month, the CPI fell 0.2%, the biggest decline since July 2024.



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UK Inflation Rate Falls More than Expected
The annual inflation rate in the UK slowed to 3.2% in November 2025, the lowest in eight months, compared to 3.6% in October and forecasts of 3.5%. The figure is also lower than the Bank of England's prediction of 3.4%. The largest downward contribution came from prices for food and non-alcoholic beverages (4.2% vs 4.9%), particularly bread and cereals, where the prices of products such as cakes, biscuits and breakfast cereals fell this year. Prices also slowed for alcohol and tobacco (4% vs 5.9%), reaching the lowest since December 2022; transport (3.7% vs 3.8%); and housing and utilities (5.1% vs 5.2%), including actual rents for housing (3.8% vs 4.1%). Services inflation eased to 4.4% from 4.5%, below the central bank forecasts of 4.5%. In addition, cost fell for clothing and footwear (-0.6% vs 0.3%), mostly women's clothing. Prices for recreation and culture rose 2.9%, the same as in October. Compared to the previous month, the CPI fell 0.2%, the biggest decline since July 2024.
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