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November inflation and savers, investors

ended 20. December 2023

The latest inflation data has just been published, showing CPI inflation fell to 3.9% in November, down from 4.6% in October. Full report >> here <<, key points below. Few questions:

What does this mean for savers?

What does it mean for investors?

How could it impact Sterling?

  • The Consumer Prices Index (CPI) rose by 3.9% in the 12 months to November 2023, down from 4.6% in October. 
  • On a monthly basis, CPI fell by 0.2% in November 2023, compared with a rise of 0.4% in November 2022. 
  • The largest downward contributions to the monthly change in both CPIH and CPI annual rates came from transport, recreation and culture, and food and non-alcoholic beverages.  
  • Core CPIH (excluding energy, food, alcohol and tobacco) rose by 5.2% in the 12 months to November 2023, down from 5.6% in October; the CPIH goods annual rate slowed from 2.9% to 2.0%, while the CPIH services annual rate eased from 6.2% to 6.0%. 
  • Core CPI (excluding energy, food, alcohol and tobacco) rose by 5.1% in the 12 months to November 2023, down from 5.7% in October; the CPI goods annual rate slowed from 2.9% to 2.0%, while the CPI services annual rate eased from 6.6% to 6.3%.
  • The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 4.2% in the 12 months to November 2023, down from 4.7% in October. 
  • On a monthly basis, CPIH fell by 0.1% in November 2023, compared with a rise of 0.4% in November 2022. 

2 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
This is great news for borrowers, small businesses and the wider public, but more worryingly it shows out out of touch the Bank of England is only a week from their commentary about holding rates higher for longer. As soon as Labour win power, Bailey will be getting his P45 soon. His tenure has been riddled with poor predictions and bad strategy. Stocks should have a boom from this news as it means future financing and investment costs should be cheaper sooner, but in contrast, savings and annuity rates will take a dip.
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Editor
Wes Wilkes
CEO at IronMarket Wealth
Directionally this is good news as inflation continues to creep down.
It certainly appears to be sticky though and not falling as quickly as we may have expected at this point. This is actually supportive of the Bank of Englands higher for longer rhetoric, although if growth continues to fall into 2024, that will be challenged severely and rate cuts may come earlier than the second half of the year.