MNI BRIEF: UK Inflation Slows Faster Than Expected In Nov

 UK CPI rose by 3.2% in the 12 months to November, down from 3.6% in the 12 months to October and below expectations of a rate of 3.4%, the Office for National Statistics said Wednesday.

Food and non-alcoholic beverages, and alcohol and tobacco made the largest downward contributions to the monthly change in CPI annual rates. Core CPI rose by 3.2% in the 12 months to November 2025, down from 3.4, while the CPI goods annual rate slowed from 2.6% to 2.1% y/y and CPI services eased slightly from 4.5% to 4.4% y/y.

ONS Chief Economist Grant Fitzner said “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 with decreases seen, particularly for cakes, biscuits, and breakfast cereals".

Lower-than-expected inflation, following sluggish GDP and labour market data, will certainly make the case easier for the Bank of England to cut rates when the vote later Wednesday (announced Thursday). (see MNI BOE WATCH: MPC Fractured, With Governor Bailey Key To Cut )