more stable inflation
The low inflation is largely due to the cost of petrol and used cars, along with tobacco, clothing, computer games and hotel accommodation.
Fuel prices have risen more slowly than a year ago and this effect has led to a steep decline in the annual pace of inflation.
Food and soft drink prices rose 16.4%, the most since September 1977, with bread and cereals leading the category increases in that group.
For her part, Yael Selvin, chief economist at KPMG, said: “While we expect inflation to continue on its downward trajectory and return to the BoE’s 2% target in the first half of 2024, there are risks it could turn out to be more This will hold as higher costs are passed on more broadly.However, a weaker economic backdrop could also see inflation fall short of its target.
Core inflation, which excludes energy, food, alcohol and tobacco prices, fell to 6.3% from 6.5% in October.
Services inflation stabilized at a 30-year high of 6.3%. High levels raise concerns that inflation will remain above target unless the Bank of England continues to act aggressively to tame price growth.
“Tobacco and clothing prices have also risen, but again less than what we saw around this time last year,” said Grant Fitzner, chief economist at the Office for National Statistics. “.
