Inflation in sharp drop after fall in food prices

INFLATION fell sharply last month as lower food prices helped to ease the cost of living for households across the UK, new official figures showed.

- ANNA WISE

The rate of Consumer Prices Index (CPI) inflation fell to 3.2% in November, from 3.6% in October, the Office for National Statistics (ONS) said.

This marks the lowest CPI rate since March this year and a bigger drop than the 3.5% that most economists were expecting for the month.

It means that prices are still rising across the country, but at a slower rate than they were before.

Food and drinks as well as alcohol and tobacco were the biggest factors pulling on the overall rate of inflation last month.

On a monthly basis, food and nonalcoholic drink prices fell by 0.2% in November, with the biggest drops coming from bread and cereals, as well as declines in dairy, sugar, jam and chocolate.