UK inflation hits 2-year low at 3.9% in November

Posted on December 26, 2023   |  

In the UK, the consumer prices index shows that inflation has gone down to 3.9% in November, the lowest in over 2 years.

This is a significant drop from the previous month's 4.6%, and it's the lowest since September 2021, surprising financial markets.

The main reasons for the decrease are lower fuel prices and a notable reduction in food prices compared to last year.

The Bank of England has kept its main interest rate at 5.25% since August, working to bring down inflation, which was over 11% at its peak, aiming for a target of 2%.

The increase in interest rates is part of the strategy to tackle higher costs for food and energy caused by supply chain issues during the pandemic and the Russia-Ukraine conflict.