Inflation in the UK saw a more significant decline than anticipated in November, registering at 3.9%, down from October's 4.6%, according to data from the Office for National Statistics (ONS).
This represents the lowest year-on-year increase in the consumer price index since September 2021.
Key sectors contributing to the reduction in prices include food and drink, transport and recreation, all of which played a crucial role in alleviating inflationary pressures.
Specifically, the average cost of petrol saw a notable decrease of 4.1p per litre between October and November 2023. Additionally, the price of bread and cereals decreased by 0.8% during this period, in stark contrast to the 1.9% increase observed a year ago.
The ONS highlighted that although the annual inflation rate for food has been slowing, prices remain elevated due to substantial surges over the past two years.
In response to the morning's announcement, the pound experienced a 0.5% dip against the US dollar, settling at $1.26.
David Bharier, head of research at the British Chambers of Commerce, said:
"Persistent inflation and high interest rates are likely to remain a barrier to business growth for some time to come. Coupled with trade barriers with the EU and ongoing worker shortages, it's not clear how large-scale growth will be unlocked.
"Businesses are desperate for a clear, long-term plan for growth which sets out a vision for infrastructure, skills, and green innovation."
Talk to us about your business costs.