UK inflation fell to 0.3% in November as clothing and food prices dropped


INFLATION in the UK fell last month as the price of clothes and food dropped, according to official figures.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation decreased to 0.3% in November, down from 0.7% in September.

The inflation rate fell by more than expected of analysts in a Reuters poll, who had predicted that inflation would come in at 0.6% for the month.

The latest figures come after the inflation rate plunged from 1% to 0.2% in August due to the Eat Out to Help Out scheme.

This represented the lowest level of CPI inflation, which measures how prices have changed over a year, since December 2015.

Clothes and shoe prices typically fall each year between June and July in summer sales as retailers prepare for autumn ranges to come in, and then rise before sales towards the end of the year, the ONS said.

However, throughout 2020 this pattern has been different, with increased sales in March and April, which is likely a result of lockdown.

Following a smaller rise between July and August, clothing prices in October then rose but they were followed by falls in November.

In November alone, clothing and footwear prices slumped 2.6%, compared with a rise of 1% last year.

It comes as several retailers increased Black Friday discounts across the whole of the month.

Elsewhere, the Consumer Prices Index including housing costs (CPIH) measure of inflation dropped to 0.6% in November, down from 0.9% in October.

Jonathan Athow, ONS deputy national statistician for economic statistics, said: “With significant restrictions in place across the UK, inflation slowed, predominantly due to clothing and food prices.

“Also, after several months of buoyant growth, second-hand car prices fell back a little.”

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