US EditionPublished • loading... • Updated
UK inflation falls sharply to 3.2% in November, fueling likelihood of Christmas rate cut
Lower food prices and stronger Black Friday discounts drove inflation down to 3.2%, prompting over 90% of market participants to expect a Bank of England rate cut.
- On Wednesday, the Office for National Statistics reported British consumer price inflation fell to 3.2% in November from 3.6% in October, giving the Bank of England a final glance before its Thursday decision.
- ONS chief economist Grant Fitzner said lower food prices, especially for cakes, biscuits and breakfast cereals, along with heavier Black Friday discounting on clothing and shoes, drove price falls between October and November.
- Markets ramped up bets that the FTSE 100 rose 0.7%, with the pound falling 0.7% to $1.3322, as Joshua Mahony noted `European markets are enjoying a positive start to the day, led by the FTSE 100 which has been in buoyant mood following a welcome decline in UK inflation`.
- Most economists now expect the November reading should persuade Bank of England policymakers to cut rates at the Thursday meeting, while financial markets price in two cuts by end-April, lowering borrowing costs for businesses and households.
- Despite the drop, the BoE warns Budget measures might lower inflation by up to half a percentage point from April 2026, but inflation remains above 2% until the second quarter of 2027 and Black Friday effects may reverse.
Insights by Ground AI
63 Articles
63 Articles
Annual inflation in the UK fell to 3.2% in November from 3.6% in October, below both market expectations and the Bank of England's forecast, and the lowest level in eight months.
·Belgrade, Serbia
Read Full ArticleCoverage Details
Total News Sources63
Leaning Left6Leaning Right8Center12Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 23%
C 46%
R 31%
Factuality
To view factuality data please Upgrade to Premium
