The UK's November inflation rate dropped to 3.9%, surprising economists. It reflects the cost of living changes, measured by indices like CPI (3.9%), CPIH (4.2%), and RPI (5.3%).

These indices cover various expenses from shampoo to cars. Although most items tracked by the ONS are pricier than a year ago—basic foods like cereal, yogurt, and sugar surged—some costs decreased. Energy bills fell by 15.4% for electricity and 31% for gas, with lower fuel prices and reduced appliance costs.

Regarding mortgages, the Bank of England targets a 2% inflation rate. The recent decline might deter future rate hikes. Predictions suggest mortgage rates, especially fixed ones, could fall below 4% next year due to this inflation dip.