Cheaper clothing & food slows inflation

Cheaper clothing & food slows inflation
The ONS also highlighted speculation that Black Friday sales were spread further across the month than in previous years.
// UK inflation in November decreases to 0.3%, down from 0.7% in October
// Analysts had predicted that inflation would only dip to 0.6%
// Sliding clothing, footwear and grocery food costs made the largest contribution to lower inflation

UK inflation slowed down in November as clothing and food prices shrank amid tightened coronavirus restrictions.

The ONS said Consumer Prices Index (CPI) inflation decreased to 0.3 per cent for the month, from 0.7 per cent in October.

It was below the expectations of analysts, who had predicted that inflation would only dip to 0.6 per cent.


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

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

The ONS said sliding clothing and footwear costs made the largest contribution to lower inflation, as shoppers saw prices which were 3.6 per cent lower than in the same month last year.

It said this was driven by increased discounting as retailers sought to drive online sales ahead of Christmas while stores remained shut in England due to the second national lockdown.

The ONS also highlighted speculation that Black Friday sales were spread further across the month than in previous years.

Meanwhile, food and non-alcoholic drinks fell by 0.6 per cent in the year to November as vegetables and confectionery prices moved lower.

The Retail Price Index (RPI), a separate measure of inflation, was 0.9 per cent in November, falling from 1.3 per cent in the previous month.

Meanwhile, the CPI, including owner-occupiers’ housing costs (CPIH) – the ONS’s preferred measure of inflation – was 0.6 per cent last month, down from 0.9 per cent in October.

with PA Wires

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