UK consumer price growth stabilised in November

Office for National Statistics said, the Consumer Prices Index (CPI) 12-month rate was 1.5% in November 2019, unchanged from October 2019. Economists had expected a 1.4% increase.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.5% in November 2019, unchanged from October 2019. The largest contribution to the CPIH 12-month inflation rate in November 2019 came from housing, water, electricity, gas and other fuels (+0.36 percentage points). The largest downward contributions to change in the CPIH 12-month inflation rate between October and November 2019 came from accommodation services and tobacco. The largest offsetting upward contributions came from food, and recreation and culture, where prices rose this year by more than a year ago.

A separate report from the ONS showed that the headline rate of output inflation for goods leaving the factory gate was 0.5% on the year to November 2019, down from 0.8% in October 2019.

The growth rate of prices for materials and fuels used in the manufacturing process was negative 2.7% on the year to November 2019, up from negative 5.0% in October 2019. Tobacco and alcohol made the largest downward contribution to the change in the annual rate of output inflation. Crude oil provided the largest upward contribution to the change in the annual rate of input inflation.