Inflation in the United Kingdom fell more than expected in November to 3.9%, marking its lowest annual reading since September 2021.
Economists in a Reuters poll forecast the former EU country to record a modest decline in headline inflation to 4.4% after recording an annual reading of 4.6% in October.
On a monthly basis, consumer price index (CPI) fell by 0.2%, compared to a forecast of 0.1% increase.
Meanwhile, core inflation, which excludes volatile food, energy, alcohol and tobacco prices, fell to 5.1% from last year. The reading was better than a 5.6% forecast.
Major contributors for the drop in consumer price in November were transport, recreation and culture, and food and non-alcoholic beverages, according to the Office for National Statistics statement on Wednesday.
Just last week, the Bank of England left its bank rate unchanged at 5.25% on Thursday as well, which was in line with expectations. As inflation remained high at 4.6% in October, UK money markets pushed back BOE’s first rate cut from May to June 2024.
