The Office for National Statistics (ONS) figures shows that inflation has eased to its lowest level in more than two years in November.
The rate of Consumer Price Index inflation dropped to 3.9% last month which was down from 4.6% in October which is the lowest level in 2-years.
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.”
Samuel Tombs at Pantheon Macroeconomics said, “November’s surprisingly sharp fall in CPI inflation reinforces the likelihood that the Monetary Policy Committee will begin to reduce Bank Rate in the first half of 2024, far earlier than it has been prepared to signal so far.”