United Kingdom joins the party with lowering inflation figures

Just in time for the holidays, the United Kingdom has reported some festive inflation figures: the UK’s CPI (the Consumer Price Index) was at 3.9 percent YoY in November 2023, down significantly from October 2023’s 4.6 percent YoY.

Of this, core inflation (excluding energy, food, alcohol and tobacco) was at 5.2 percent, as opposed to October's 5.6 percent. The annual goods rate for CPIH (CPI including housing costs) was arguably the best news of the hour, coming down substantially from 2.9 percent to two percent.

Like the Eurozone before it, who released their November inflation figures yesterday, the United Kingdom’s drop in inflation was largely attributed to cheapening oil prices bringing about the first decline in fuel prices in almost six months, bringing down the financial transport burden for many. However, softening food, beverage and recreation prices also played a part:

The lower inflation comes at a good time of year for many, with holiday shopping and winter in full swing. Even better, it may clear the path for the Bank of England to lower inflation rates early in 2024. Many consumers would no doubt welcome this, after an especially brutal rate hiking cycle. As the Office for National Statistics notes:

However, the release did note that there was some work still to be done, in that “UK inflation is easing but remains above that of the EU and Germany.”