Brief by Shorts91 Newsdesk / 10:45am on 17 Dec 2025,Wednesday International
UK inflation fell more than expected in November, dropping to 3.2%, its lowest level since March, driven mainly by falling food prices such as cakes, biscuits and cereals. The sharper-than-forecast decline has strengthened expectations that the Bank of England will cut its main interest rate to 3.75% this week as the UK economy faces weak growth and rising unemployment. Finance minister Rachel Reeves welcomed the data, calling lower household bills a priority. Markets reacted immediately, with the pound weakening as traders priced in further rate cuts in 2026. Analysts say the fall in inflation is likely enough for Governor Andrew Bailey to approve another rate reduction, offering borrowers a “Christmas present.” (PC: The Economic Tiimes)
