UK inflation cools to 3.2 in November
Shoppers pass by shops on Regent Street on the last weekday before Christmas on December 22, 2023 in London.
Henry Nicholls | Afp | Getty Images
Britain’s inflation rate fell sharply to 3.2% in November, increasing the chances of the Bank of England cutting interest rates at its final meeting of the year on Thursday.
Economists polled by Reuters had expected inflation to remain at 3.5% in the twelve months to November, down from 3.6% in October.
Core inflation, which excludes energy, food, alcohol and tobacco, also rose by 3.2% in November, up from 3.4% in October, according to the latest figures from the Office for National Statistics.
Data, which comes after pressure showed the UK unemployment rate rose by 5.1 per cent on Tuesday, is likely to prompt the Bank of England’s nine-member monetary policy committee (MPC) to cut its benchmark interest rate by 25 basis points to 3.75 per cent at its meeting on Thursday.
Economists expect a 5-4 vote from the central bank’s MPC, but BOE Governor Andrew Bailey is expected to be the deciding vote in favor of a rate cut.
Growth in the UK remains stubbornly low, with the economy growing by just 0.1% in the third quarter, according to the latest data.
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