House prices in Monmouthshire increased in October, rising more than the average across Wales, new figures show.

Figures from the Office for National Statistics show the average Monmouthshire house price in the year to October was £339,158 – a 1.3% increase on September.

It was higher the average across Wales, where prices increased by 1.1%.

The rise in Monmouthshire contributes to the longer-term trend in the area, which has seen property prices in the area grow by 5.9% over the last year.

It means the area saw the highest annual growth in Wales, with the average price in Monmouthshire rising by £19,000 over the past year.

At the other end of the scale, properties in Ceredigion lost 11.5% of their value.

Across the UK, the average house price in October was £270,000, the ONS said.

The figures were released as the rate of Consumer Prices Index (CPI) inflation slowed to 3.2% in November, from 3.6% in October.

It is the lowest CPI rate since March and a bigger slowdown in inflation than many economists had been expecting.

Amy Reynolds, head of sales at London-based estate agency Antony Roberts, said: "In London, where affordability and sentiment are highly rate-sensitive, even small shifts in expectations can have an outsized impact on activity."

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "When house prices fall it affects wannabe downsizers who are relying on the equity in the home to supplement their retirement income. It also dents the confidence of homeowners, who feel less well off, and may hold back on spending as a result.

"Given how sluggish economic growth is right now, this could spell more bad news for the economy.

"The only people likely to be celebrating are those moving up the property ladder and first-time buyers."