UK inflation fell more than expected in November to 3.2%, its lowest level in eight months, driven by a slowdown in food price rises and Black Friday discounts. The Office for National Statistics reported the consumer prices index dropped from 3.6% in October, surpassing economists' forecasts of 3.5%.
The decline strengthens the case for the Bank of England to cut interest rates for a sixth time on Thursday. Financial markets now price in a more than 90% chance of a quarter-point reduction from the current 4% base rate. The pound fell 0.7% against the dollar following the data.
ONS chief economist Grant Fitzner said lower food prices, particularly for cakes, biscuits, and breakfast cereals, were the main driver. Tobacco prices and women's clothing also contributed to the fall. Core inflation, excluding energy and food, eased from 3.4% to 3.2%.
Chancellor Rachel Reeves welcomed the drop, stating that getting bills down is her top priority. However, shadow chancellor Mel Stride noted that prices are still rising well above the 2% target, causing concern for families. Campaigners warned that 7 million households cannot afford essentials this Christmas.
