UK's November Inflation Came In Below Expectations

Inflation Report for November Released in the UK

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

Monthly Inflation and Core Figures

The monthly inflation in November showed a decrease of -0.2%, which is an important indicator of the economy's trajectory. The core inflation, excluding energy and food prices, was determined to be 3.2%. Additionally, service inflation also showed a decline, dropping to 4.4%. Analyses emphasize that the decreases in food and tobacco prices are the primary factors contributing to the slowdown in inflation.

Expert Opinions and Economic Expectations

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

Expectations for Interest Rate Cuts from the Central Bank

Following the release of the data, economists anticipate that the Bank of England may lower its policy interest rate at tomorrow's meeting. This is considered a critical development in terms of the steps to be taken in the fight against rising living costs and inflation.