UK inflation slowed to 3.2% in November

UK inflation slowed sharply in November, increasing the likelihood of an interest rate cut by the Bank of England at its final meeting of the year on Thursday.

Data released Wednesday by the Office for National Statistics showed that UK consumer prices rose 3.2% in November, slowing from 3.6% in October and falling short of expectations of a 3.5% increase.

Core inflation – which excludes energy, food, tobacco, and other items – reached 3.2% in November, down from 3.4% in October.

This could encourage the Bank of England to cut interest rates by 25 basis points to 3.75% at its meeting tomorrow, especially after yesterday's data showed the UK unemployment rate rose to 5.1%.