UK inflation grew by 3.2% in the year to November, the lowest growth rate recorded since March, the Office for National Statistics (ONS) has revealed.

The consumer price index (CPI) inflation figure was 3.6% in the 12 months to October.

Month-on-month, CPI inflation shrunk by 0.2% in November, after increasing by 0.1% in the year previously.

The ONS stated that the slowing in the CPI rate was due to downward contributions from eight divisions, partially offset by a small upward contribution from communications.

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

The latest inflation data comes ahead of the next Bank of England (BoE) base rate decision, which will be announced by the Monetary Policy Committee (MPC) tomorrow.

Director of retail banking at LHV Bank, Kris Brewster, said: "Let’s hope today’s fall, building on the drop in October shows the BoE finally getting inflation under control. Missing the inflation target for well over a year isn’t a technical detail. It’s a real cost felt by hardworking people whose wages still haven’t caught up. Many people are still struggling with day-to-day living costs and although inflation has been on a downward trajectory since the 11% high in October 2022 it is still too far off the pace.

"With Christmas just one week away and spending up ahead of the festivities, consumers will be more than aware prices at the tills have been high this year. Budgeting carefully and taking greater control over your personal finances by switching to high-interest current and savings accounts are among the only tools left to offset the squeeze.

Chief executive officer at Movera, Nick Hale, said that the latest inflation confirm that the MPC "must cut the base rate".

He added: "The Budget announcement last month did very little to encourage home buying and selling. The Chancellor successfully made buy-to-let and higher value properties less attractive while offering nothing to first time buyers looking to get a foothold on the property ladder. And yet, home moves help to fuel the economy. Encouraging property transactions is a sure-fire way to stimulate growth.

"Given the Chancellor missed a trick with the budget, the sector really needs to see the base rate cut. If lenders can slash interest rates further, we might just be able to stimulate some momentum in the market, without having to rely solely on the 1.8 million due to refinance next year. UK Finance may have predicted earlier this week that it will be down to the remortgage wave to carry the property market through 2026, but that doesn’t have to be the case."

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