UK inflation rate slows to 3.9%, lowest in more than two years

The latest data from the Office for National Statistics (ONS) reveals that the UK inflation rate has fallen to 3.9% in the year leading up to November. This decrease surpasses expectations, marking a substantial dip and bringing inflation to its lowest point in over two years.

Some economists had predicted that it would slow from 4.6% to 4.3% or even 4%. But at 3.9%, that has beaten everyone’s forecasts.

Inflation measures the pace at which prices are rising in the UK. Inflation has been slowing down since record highs towards the end of last year.

So how come inflation has fallen by more than forecast?

A big factor was a fall in average prices for both petrol and diesel. 

ONS chief economist Grant Fitzner says whilst inflation has eased to “its lowest annual rate for over two years”, prices “remain substantially above” what they were before the war in Ukraine began in February 2022.