UK November Inflation Came in Below Expectations

UK Inflation Report for November Released

The Office for National Statistics (ONS) has announced the inflation data for November 2023. The annual inflation in the country was recorded at 3.2%, surpassing market expectations. Analysts had forecasted that inflation would reach 3.5%. In October, the annual inflation was measured at 3.6%.

Monthly Inflation and Core Figures

The decline in inflation by (-0.2%) on a monthly basis in November is an important indicator of the economy's direction. The core inflation, excluding energy and food prices, was determined to be 3.2%. Additionally, service inflation also showed a decrease, dropping to 4.4%. Analyses emphasize that the declines in food and tobacco prices were the largest factors in the slowdown of inflation.

Expert Opinions and Economic Expectations

ONS Chief Economist Grant Fitzner stated that the annual inflation has fallen to its lowest level since March. These figures are considered a positive development, especially for families concerned about the cost of living. UK Chancellor of the Exchequer Rachel Reeves noted that while the decrease in inflation is an important step, there are still many steps that need to be taken.

Central Bank's Interest Rate Cut Expectations

Following the release of the data, economists predict that the Bank of England may implement a cut in the policy interest rate at its meeting tomorrow. This development is assessed as critical in the steps to be taken against rising living costs and inflation.