UK November Inflation Remained Below Expectations

UK Inflation Report for November Released

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%, 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 monthly inflation in November showed a decrease of -0.2%, which is an important indicator of the economic trend. 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 decrease in food and tobacco prices was the biggest factor 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 seen as a positive development, especially for families concerned about the cost of living. UK Chancellor Rachel Reeves noted that while the decline in inflation is an important step, there are still many steps to be taken.

Central Bank's Expected Interest Rate Cut

Following the release of the data, economists predict that the Bank of England may cut the policy interest rate at its meeting tomorrow. This is considered a critical development in terms of measures to combat rising living costs and inflation.