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UK inflation falls sharply to 3.2% in November, fueling likelihood of Christmas rate cut
Lower food prices and stronger Black Friday discounts drove inflation down to 3.2%, prompting over 90% of market participants to expect a Bank of England rate cut.
- On Wednesday, the Office for National Statistics reported British consumer price inflation fell to 3.2% in November from 3.6% in October, giving the Bank of England a final glance before its Thursday decision.
- ONS chief economist Grant Fitzner said lower food prices, especially for cakes, biscuits and breakfast cereals, along with heavier Black Friday discounting on clothing and shoes, drove price falls between October and November.
- Markets ramped up bets that the FTSE 100 rose 0.7%, with the pound falling 0.7% to $1.3322, as Joshua Mahony noted 'European markets are enjoying a positive start to the day, led by the FTSE 100 which has been in buoyant mood following a welcome decline in UK inflation'.
- Most economists now expect the November reading should persuade Bank of England policymakers to cut rates at the Thursday meeting, while financial markets price in two cuts by end-April, lowering borrowing costs for businesses and households.
- Despite the drop, the BoE warns Budget measures might lower inflation by up to half a percentage point from April 2026, but inflation remains above 2% until the second quarter of 2027 and Black Friday effects may reverse.
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MORNING BID EUROPE-BoE to make the cut as others stay the course
MORNING BID EUROPE-BoE to make the cut as others stay the course A look at the day ahead in European and global markets from Tom Westbrook Markets expect the Bank of England to be the only mover at a slew of central bank meetings on Thursday, with a 25-basis-point rate cut to 3.75% almost as predictable as the top order collapse at the Ashes test in Adelaide.Wednesday's unexpected drop in UK inflation has reassured investors that policy easing i…
·India
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Chronicle Live+7 Reposted by 7 other sources
UK inflation rate drops to 3.2% - what it means for you and your finances
The rate of inflation is now at an eight-month low in November
·Newcastle upon Tyne, United Kingdom
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Coverage Details
Total News Sources107
Leaning Left7Leaning Right14Center21Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
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