UK inflation dropped harder than anyone predicted last month, hitting its lowest point in almost a year. The consumer price index rose just three percent annually in November, falling below official forecasts. Core inflation, which ignores food and energy swings, also cooled.
Cheaper groceries were the main reason for the slowdown, with food prices actually dropping when they normally climb. Lower costs for clothing, alcohol, and tobacco added to the downward pull. This broad decline strengthens the case for the Bank of England to cut interest rates again this week, moving to stimulate a sluggish economy. Recent data showing weaker wage growth and a softening job market already pointed toward this outcome.
Cheaper groceries were the main reason for the slowdown, with food prices actually dropping when they normally climb. Lower costs for clothing, alcohol, and tobacco added to the downward pull. This broad decline strengthens the case for the Bank of England to cut interest rates again this week, moving to stimulate a sluggish economy. Recent data showing weaker wage growth and a softening job market already pointed toward this outcome.
