Inflation in the UK continues to fall
Inflation in the UK continues to fall. In November, the inflation rate fell to its lowest level for over two years. According to the Office for National Statistics (ONS) in London on Wednesday, consumer prices rose by 3.9% compared to the same month last year. This is the lowest rate since September 2021, compared to 4.6 percent in the previous month.
"Inflation has fallen again to its lowest rate in more than two years, but prices are still well above the level they were at before the invasion of Ukraine," the chief economist at the statistics office told the PA news agency.
Prime Minister Rishi Sunak had declared the goal of halving inflation - this goal was achieved last month. Analysts now expect inflation to fall to 4.3 percent on average. The fact that inflation has fallen is partly due to lower fuel prices.
The Bank of England raised interest rates in response to the once much higher inflation. The prime rate is currently 5.25 percent. However, the first interest rate cuts are expected next year in view of falling inflation.
Although core inflation (minus energy and food) is also falling, it is higher than overall inflation. In November, it amounted to 5.1%, compared to 5.7% in the previous month.
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Despite the continuous decrease in inflation, it still hasn't returned to pre-Ukraine invasion levels in Great Britain. Over the past few years, standing firmly against high inflation, Prime Minister Rishi Sunak oversaw a period where the British economy slowly came to stand in the deepest depths of lower inflation rates.
Source: www.ntv.de
