The Office for National Statistics (ONS) has released official figures which show that inflation has dropped to its lowest level in more than two years. The rate of Consumer Prices Index (CPI) inflation dropped to 3.9% in November, a fall from 4.3% in October. It is the lowest level since September, giving shoppers some reprieve before the end of 2023. Experts and economists had predicted a further fall from October's 4.3%. However, the drop to 3.9% was bigger than expected. Grant Fitzner, chief economist at the ONS, said: “Inflation eased again to its lowest annual rate for over two years, but prices remain substantially above what they were before the invasion of Ukraine. The biggest driver for this month’s fall was a decrease in fuel prices after an increase at the same time last year. “Food prices also pulled down inflation, as they rose much more slowly than this time last year. There was also a price drop for a range of household goods and the cost of second-hand cars.” Chancellor Jeremy Hunt said: “With inflation more than halved we are starting to remove inflationary pressures from the economy. Alongside the business tax cuts announced in the autumn statement this means we are back on the path to healthy, sustainable growth. But many families are still struggling with high prices so we will continue to prioritise measures that help with cost-of-living pressures.”
