UK inflation cools to 3.2 in November
Shoppers walk past shops on Regent Street on the final weekday before Christmas in London on December 22, 2023.
Henry Nicholls | Afp | Getty Images
The U.K.’s inflation rate cooled sharply to 3.2% in November, boosting 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 stand at 3.5% in the twelve months to November, down from 3.6% in October.
Core inflation, excluding energy, food, alcohol, and tobacco, also rose by 3.2% in the year to November, down from 3.4% in October, according to the latest figures from the Office for National Statistics.
The data, coming after a print on Tuesday showing the U.K. unemployment rate rose 5.1%, is likely to encourage the Bank of England’s nine-member monetary policy committee (MPC) to cut the benchmark interest rate by 25 basis points to 3.75% when it meets on Thursday.
Economists expect a 5-4 vote by the central bank’s MPC, however, with BOE Governor Andrew Bailey expected to be the swing vote in favor of a trim.
Growth in the U.K. remains stubbornly low, with the economy eking out only a 0.1% expansion in the third quarter, according to the most recent data.
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