The inflation drop is Rishi’s surprise Christmas gift to the nation

Prices are now rising at their slowest in two years – but will the PM get any credit for it? That depends on how soon the Bank of England can cut interest rates, says James Moore

Supermarket prices remain high – but the inflation drop means the prime minister has made good on one of his five priorities

Christmas has come early for British shoppers, businesses and especially Rishi Sunak, with November’s inflation rate showing a surprisingly steep fall to 3.9 per cent, from 4.6 per cent.

That figure – the lowest rate of price increases for two years – caught the City and just about everyone else on the hop: the regular poll of economists conducted by Reuters produced a consensus forecast of 4.4 per cent.

Food and non-alcoholic beverages were a big contributor to the downward momentum. The cost of a supermarket shop is still rising at a painful rate – 9.2 per cent, according to the Office for National Statistics. But the rate of increase is falling fast. In October, that figure was 10.1 per cent.