UK inflation unexpectedly drops to 2.5%, potentially leading to interest rate cuts.
UK inflation dropped to 2.5% in December from 2.6% in November, mainly due to lower hotel and tobacco prices, despite higher fuel and second-hand car costs. This unexpected decrease may encourage the Bank of England to cut interest rates, though inflation remains above the 2% target, causing concern among economists and policymakers. The core inflation rate, excluding volatile items, fell to 3.2%.
2 months ago
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