Inflation figures: Responses

Consumer price inflation, UK: November 2025

Chancellor of the Exchequer, Rachel Reeves, said: 

“I know families across Britain who are worried about bills will welcome this fall in inflation.

“Getting bills down is my top priority. That is why I froze rail fares and prescription fees and cut £150 off average energy bills at the Budget this year. The Bank of England agree this will help cut prices and expect inflation to fall faster next year as a result.”

Background:

• Taken together the OBR's forecast shows government policy will lead to the biggest near-term reduction in inflation due to government policy ever forecast by the OBR at a single fiscal event, outside of a crisis.    
• Clare Lombardelli of the Bank of England speaking to the Treasury Select Committee said that “The biggest impact for us is the direct impact on inflation in the relatively near term. So we think it will reduce inflation by between 0.4 and 0.5% for a year from the second quarter of 2026. That's the same as the as the OBR. They've got very similar number. That is a purely mechanical effect. The changes in energy prices, fuel duty, electric vehicles and rail. So that will just shift inflation.”     

CBI

Martin Sartorious, CBI Principal Economist, said:

“Inflation eased more than expected in November, falling noticeably below the Bank of England's projections. The slowdown in inflation is expected to continue next year as the impact of previous price increases in energy and utilities bills fades, according to the CBI's latest Economic Forecast. 

“While we remain some way from the Bank of England's 2% target, this latest data offers clearer evidence that underlying price pressures are continuing to ease. This outturn will strengthen the case for the Monetary Policy Committee to cut rates in December – despite ongoing debate within the Committee about the degree of inflationary persistence in the economy.” 

British Chambers of Commerce

Reacting to the latest ONS inflation data published this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said:    

“Businesses will be cheered by the larger than expected slowing of inflation in November to 3.2%, suggesting it is now past its peak.  

“With unemployment on the rise and wage growth down this would suggest there is now more room for the Bank of England to cut interest rates tomorrow.  

“If it does as expected, it would be a welcome early Christmas present for firms who remain under serious cost pressure.  

“While the budget did not pile further tax rises on all firms their confidence remains low due to its lack of significant growth measures.   

“The economy will continue to stutter unless business costs ease further, and firms are given the right tools to invest, recruit and trade.   

“Businesses will want to see the government stepping up in 2026 to deliver real-world change including much trumpeted reforms on planning, regulation, skills and the EU reset.” 

More information on the inflation data can be found here.

TUC

Commenting on the latest inflation figures showing a larger than expected fall of 0.4 points in CPI from 3.6 in October to 3.2 per cent in November, TUC General Secretary Paul Nowak said:      

"Inflation may be falling, but many working people are still struggling to afford the basics. 

“The government acted to protect living standards and push back against inflation in last month's Budget, but more must be done.  

“The economy is fragile and high interest rates are draining confidence from households and firms. It's vital that we now boost demand.  

“The Bank of England has been too cautious this year, and inflation is already lower than they expected only last month. So an interest rate cut this week must be the start of a sequence of reductions over the months ahead. It's long overdue and it's the shot in the arm that the economy needs. 

“Lower rates will give firms the confidence to invest and help get more households spending.” 

Notes to editors: 

- RPI inflation fell 0.5 points to 3.8% in November from 4.3% in October 

Institute of Directors

Commenting on today's data from the Office for National Statistics that showed the annual rate of CPI inflation falling to 3.2% in November 2025, from 3.6% in October, Anna Leach, Chief Economist at the Institute of Directors, said:

“Inflation has fallen back decisively in today's data, and by more than expected, bringing the rate to its lowest since March. Food price inflation has eased sharply to its lowest rate since April, despite typically rising at this time of year, while services inflation – a key indicator of domestic price pressure – has also edged down. Together, these figures increase the likelihood of a welcome interest rate cut tomorrow.

“Recent indicators point to a notable weakening in both the economy and the labour market, with unemployment reaching its highest level since 2015. Today's inflation outturn has also come in below the Bank of England's expectations, driven in part by unexpectedly soft food prices. The Bank will also assess the impact of the recent Budget on the outlook for inflation. And despite being trailed as actively disinflationary, the Budget's effects are more mixed due to the increase in spending and borrowing over the next two years. But on balance, the case for a rate cut has been made.”