The drop in the consumer prices index figure was slightly bigger than expected by most City analysts, who forecast the annual rate of price rises would slide to 10.9% last month, from 11.1% in October.
However, prices were still rising, albeit at a slower rate, and the increasing costs will add to the pressure on ministers to put up wages across the public sector to close the gap between earnings and rising prices.
The measure of inflation used by most trade unions as the basis for annual pay claims – the retail prices index – fell only marginally from 14.2% to 14% in November.
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