UK inflation rate falls to 3.2%

Pound 1

The Consumer Prices Index (CPI) rose by 3.2% in the 12 months to November 2025, down from 3.6% in the 12 months to October, data published by the Office for National Statistics on Wednesday (17 December) shows.

On a monthly basis, CPI fell by 0.2% in November 2025, compared with a rise of 0.1% in November 2024.

The largest downward contributions were from the food and non-alcoholic beverages and alcohol and tobacco divisions.

“Inflation fell notably in November to its lowest annual rate since March. Lower food prices, which traditionally rise at this time of year, were the main driver of the fall with decreases seen particularly for cakes, biscuits and breakfast cereals,” said ONS Chief Economist Grant Fitzner.

“Tobacco prices also helped pull the rate down, with prices easing slightly this month after a large rise a year ago. The fall in the price of women’s clothing was another downward driver,” he said.

Food inflation

Food and non-alcoholic beverages prices rose by 4.2% in the 12 months to November 2025, down from 4.9% in the 12 months to October. On a monthly basis, food and non-alcoholic beverages prices fell by 0.2% in November 2025, compared with a rise of 0.5% a year ago.

The main downward effect to the change in the rate came from bread and cereals, where the prices of products such as cakes, biscuits and breakfast cereals fell this year but rose a year ago. There were other smaller downward effects from dairy products and the sugar, jam, syrups, chocolate and confectionery class.

Prices in the alcohol and tobacco division rose by 4.% in the 12 months to November 2025, down from 5.9% in the 12 months to October. The November figure was the lowest recorded since December 2022, when the rate was 3.8%. On a monthly basis, prices fell by 0.4% in November 2025, compared with a rise of 1.4% a year ago.

The easing in the 12-month rate reflected a downward effect from tobacco, where prices fell by 0.1% between October and November 2025, compared with a rise of 3.3% a year ago. The rise in November 2024 was possibly influenced by an increase in tobacco duty, which took effect on 30 October 2024. Duty rates on tobacco did not increase in 2025 until 26 November, which was after the data collection period for the month.

Now read: Why the average British household is feeling the gloomiest in two years

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