PREVIEW

Lower Clothing And Food Prices Help Inflation Fall By More Than Expected. UK inflation dropped to 3.2% in November, down from 3.6%, marking its lowest level in eight months and a bigger fall than analysts had predicted. The main driver was food prices, which fell month on month — unusual for this time of year. The Office for National Statistics says prices dropped particularly for cakes, biscuits and breakfast cereals. Food inflation eased to 4.2% over the year, down from 4.9% previously. Other factors pulling inflation lower included cheaper clothing, tobacco, restaurant meals, hotel stays, furniture and transport. While prices are still rising overall, several everyday items became cheaper between October and November. The figures come just ahead of the Bank of England’s interest rate decision, with markets widely expecting a cut. Chancellor Rachel Reeves welcomed the news, saying families would feel the benefit and pointing to measures in the Budget, aimed at cutting household bills, including frozen rail fares, prescription fees and lower energy costs.
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