UK inflation unexpectedly fell to 2.5 per cent in December, sparking increased expectations of an interest rate cut by the Bank of England next month. The surprise decline from November's 2.6 per cent marked the first drop in inflation for three months.

The U.K. economy grew at a lackluster pace of 0.1% in November, data from the Office of National Statistics showed Thursday.

The Bank of England uses CPI inflation as a key indicator in its monetary policy decisions, aiming to keep inflation close to a target set by the Government, typically around 2 per cent per year.

The Bank of England will cut interest rates four times this year to support a flat-lining economy, economists polled by Reuters said, but they added that risks to inflation are to the upside, suggesting policymakers may end up doing less.

Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month

The fall in the headline rate of inflation from 2.6 percent to 2.5 percent was unexpected and positive news for the Chancellor Rachel Reeves.

Alan Taylor, the most recently appointed member of the Bank's monetary policy committee (MPC) said the UK is 'in the last half mile on inflation' and called for a pre-emptive cut

LONDON (Reuters) - British inflation unexpectedly slowed last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by finance minister Rachel Reeves after recent a market selloff.

However, it means the Consumer Prices Index (CPI) - the main measure of inflation - remains stubbornly above the Bank of England’s target of 2%. The Office for National Statistics (ONS ...

Tumbling retail sales are set to pile more pressure on Andrew Bailey and his colleagues at the Bank of England to cut interest rates further and faster...

Inflation Eases, Tesla Soars, and Goldman Sachs Leads Bank RallyWed, 15 Jan 2025 16:59:33 GMT Recent data paint a picture of a UK economy losing steam. GDP growth recorded a standstill in Q3 2023 ...

The Bank of England should move quickly to bring down interest rates given signs of a slowdown in Britain's economy, Alan Taylor, the BoE's most recently appointed interest rate setter, said on Wednesday.