UK inflation hits lowest level since March 2017

According to latest data from the Office for National Statistics (ONS), the 12-month inflation rate has fallen to 2.3 per cent in November — from 2.4 per cent in October.

CPIH was unchanged at 2.2% in the year to November, while CPI fell to 2.3%, down from 2.4% in October #inflation https://t.co/rhNWyIiSiN pic.twitter.com/rqF1TdNfr0

— Office for National Statistics (ONS) (@ONS) December 19, 2018

Cheaper petrol and video games helped push the UK’s inflation rate to its lowest since early 2017 last month.

Meanwhile, consumer prices rose at an annual rate of 2.3% in November, the lowest since March 2017.

Commenting on today’s house prices figures, Head of Inflation Mike Hardie said: https://t.co/sddb55YVzJ pic.twitter.com/xxONimLhKH

— Office for National Statistics (ONS) (@ONS) December 19, 2018

UK inflation is clearly on a “downward trend,” commented Mike Jakeman, senior economist at PwC. Jakeman adds: “Consumer price inflation slowed in November, to 2.3% year on year, from 2.4% in October. This was the slowest pace of increase for 20 months and was driven by the effect of lower global oil prices, which reduced the cost of a tank of fuel for British motorists by an average of 2.6 pence a litre in the past month. But even setting the aside the effects of volatile components such as fuel, it is clear that inflation is on a downward trend.

“Both headline and core inflation measures have steadily slowed during 2018, as the effect of a weaker pound has diminished and economic growth has remained tepid.”

However, a different set of ONS data showed that for homeowners, the average price of a house rose at its slowest rate since July 2013, up 2.7% on the year.