UK inflation cooled faster than expected in November, adding momentum to market expectations that the Bank of England will cut interest rates at its next decision on 18 December 2025.
The Office for National Statistics data showed CPI inflation fell to 3.2% in November from 3.6% in October, undershooting both economists’ forecasts and the Bank’s own projection. The drop was driven by easing food price rises and discounting effects around Black Friday, alongside softer prices in categories including clothing and some grocery staples.
Financial markets reacted swiftly: sterling weakened and government bond yields fell as traders moved to price in ...