November CPI: high inflation is on the way out

For the 5th straight month, inflation as measured by the CPI declined on a YoY basis, with YoY growth falling to 7.1% in November. The last two months have seen a particularly notable fall, with YoY inflation declining by more than a full percentage point.

The significant deceleration over recent months can be better seen via the use of 3- and 6-month annualised changes. On a 3-month annualised basis, CPI growth has fallen to 2.1%, while on a 6-month annualised basis, CPI growth has fallen to 3.7%. This marks a significant divergence from the more lagging and smoothed 12-month measure.