UK inflation at 3.2% in Nov 2025 as food costs ease
On 17 December 2025, the Office for National Statistics said UK consumer prices rose 3.2% in the year to November. Put simply: a basket that cost £100 last November now costs £103.20. That’s still above the Bank of England’s 2% aim, but it is a clear step down from October’s 3.6%, and it will show up first in your weekly shop.
Step back for context. Prices were rising much faster not long ago: inflation peaked at 11.1% in October 2022, then ticked up again to around 3.8% in late summer 2025 before easing to 3.2% in November. Lower inflation means prices are still going up, just more slowly - it is not the same as prices falling across the board.
What moved the number this month? Essentials did most of the work. Annual food and non‑alcoholic drink inflation slowed to 4.2% from 4.9%, while alcohol and tobacco eased to 4.0% from 5.9%. Clothing and footwear were actually cheaper than a year ago (down 0.6%), helped by retailers rolling out heavier Black Friday discounts earlier than usual. The category figures come from CPIH, the ONS’s broader measure that includes owner‑occupiers’ housing costs.
Inside the food aisle, some items still climbed fast: beef and veal up 27.7% over the year; chocolate up 17.3%; whole milk up 14.8%; coffee up 14.5%. Others fell: olive oil down 16.2%; flours down 6.1%; pasta down 4.2%; sugar down 4.0%. These shifts come from the Food and Drink Federation’s read of ONS categories, summarised by the Guardian’s live coverage. Olive oil’s drop also reflects better European harvests and lower producer prices reported in November by the International Olive Council.
What this means for borrowing and saving. With inflation cooling, markets are now pricing an interest‑rate cut by the Bank of England on Thursday 18 December, with a move from 4.0% to 3.75% widely expected. If you’re on a tracker mortgage or have borrowing linked to the base rate, monthly costs could edge down. Savers may see top rates trimmed; remember your real return is interest minus inflation - earn 4% with inflation at 3.2% and your gain after inflation is about 0.8%.
For household budgets, slower food inflation helps most if a large share of your income goes on essentials. If your pay hasn’t risen by at least 3.2% over the past year, your spending power is still weaker than it was. It’s a good moment to compare your latest pay review with today’s CPI figure and reset any monthly budgets you share with students or family.
A quick definitions box you can teach with. CPI is the main inflation measure; CPIH also includes the cost of owning and living in your home; “core” strips out energy, food, alcohol and tobacco to show longer‑lasting trends. For November: CPI was 3.2%, CPIH 3.5%, and core CPI 3.2%, according to the ONS.
Seasonal discounting matters. When big clothing chains cut prices earlier and deeper in November, measured prices fall and the headline rate follows. Those effects can fade when offers end, so economists will watch how much of November’s drop was driven by promotions versus more durable shifts. For November, early Black Friday discounting clearly helped.
Looking beyond cash accounts. Policymakers want more of us to invest for the long term. The Financial Conduct Authority has published near‑final rules for a new “targeted support” service that, from April 2026 (subject to final legislation and permissions), will let authorised firms suggest broad investment options to groups of customers. That won’t suit everyone, but it’s designed to give people clearer, safer pointers than they currently receive.
What to watch next. First, the Bank of England’s rate decision on Thursday 18 December 2025. Then the next ONS inflation release on 21 January 2026. When the new figures land, focus on services inflation and the food categories - they’ll tell us whether the squeeze is finally loosening for your classroom or household.