UK inflation rate falls below 4%

In November, UK inflation dropped more than expected to 3.9%, down from October's 4.6%, the lowest year-on-year increase since September 2021. Core inflation, excluding energy and food, also decreased to 5.1%. The figures fuel speculation about the Bank of England (BoE) cutting rates in 2024, following a recent flurry of rate hikes. They however remains cautious, emphasising the need for conclusive evidence that inflation is beaten. At this juncture, market participants are anticipating a first rate cut in May, with a 50% chance of a cut in March. On the data being released, the pound fell against the dollar, while the FTSE 100 rose.