Brief by Shorts91 Newsdesk / 08:50am on 20 Dec 2023,Wednesday Business
The UK's inflation rate fell more than expected to hit a 15-month low of 3.9% in November, buoyed by declining transport, recreation, food and non-alcoholic beverage prices. This marked the first monthly decline since September 2021 and undershot the 4.4% consensus forecast. Core inflation also hit a lower-than-anticipated 5.1% annually. The larger-than-forecast drop challenges the Bank of England's hawkish stance that rates need to stay elevated for longer to control inflation. Experts suggest easing pressures signal the BoE was too cautious on rate cuts as a weakening economy may compel policy loosening by autumn. The data brings relief on mounting cost of living woes after inflation hit a 41-year high of 11.1% in October.
