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 — the lowest annual rate since March — and 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.
Lower food prices, which traditionally rise in the run up to Christmas, were the main driver of the fall, with decreases seen particularly for cakes, biscuits, and breakfast cereals, ONS Chief Economist Grant Fitzner commented Wednesday.
“Tobacco prices also helped pull the rate down, with prices easing slightly this month after a large rise a year ago. The fall in the price of women’s clothing was another downward driver,” Fitzner said in comments on X.
