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. Annual inflation in the country was recorded at 3.2%, surpassing market expectations. Analysts had forecasted that inflation would reach 3.5%. In October, annual inflation was measured at 3.6%.

Monthly Inflation and Core Numbers

The monthly inflation decline of (-0.2)% in November serves as an important indicator for the economy's trajectory. The core inflation, excluding energy and food prices, was set at 3.2%. Additionally, service inflation also showed a decline, dropping to 4.4%. Analyses emphasize that decreases in food and tobacco prices were the main factors behind the slowing inflation.

Expert Opinions and Economic Expectations

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

Central Bank Interest Rate Cut Expectations

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