Official figures show that UK inflation has slowed to 10.7 per cent in the year to November 2022, having stood at 11.1 per cent in October.
The slowing rate of price rises suggests that inflation may now have passed its peak during this cost-of-living crisis.
While prices will continue rising, some analysts believe that they will not do so at such a rapid pace and will begin to slow over time.
However, chief economist at the Office for National Statistics, Grant Fitzner, warned that any optimism must be tempered.
He said: “We've only one fall from a 40-year high so let's wait a few months and see how it goes.”
Shadow chancellor Rachel Reeves also highlighted that despite the encouragement from the latest figures, households will not “feel better off under the Tories” with prices still excessively high.
The slowdown in inflation seen during November was largely driven by lower prices for petrol and second-hand cars, although average fuel prices remain high compared to this time one year ago.
Average petrol and diesel prices in the year to November 2022 were recorded at 163.6 pence and 187.9 pence per litre respectively, having stood at 145.8 pence and 149.6 pence a year before.
Rising alcohol prices in hospitality settings and higher costs for groceries also tempered the slowdown in the inflation rate. Indeed, ONS figures show that annual food inflation for the year to November tallied in at 16.5 per cent, up by 0.1 per cent on the year to October.
This, along with high household bills, means that households are still likely to feel the pinch for some time despite the encouraging numbers.
To help mitigate the impact of inflation, the UK government has introduced measures in its Autumn Statement to ease the burden of excessive bills on households, via the Energy Price Guarantee. Ministers are also lining up an ambitious target of reducing inflation by half in 2023.
Chancellor Jeremy Hunt said: “I know it is tough for many right now, but it is vital that we take the tough decisions needed to tackle inflation - the number one enemy that makes everyone poorer.”
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