Sharp inflation drop ‘seals the deal’ for interest rate cut, economists say

Evening Standard 2025-12-17

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A bigger-than-expected drop in inflation last month “seals the deal” for the Bank of England to deliver a pre-Christmas cut to interest rates, economists think.Shops offering Black Friday sales helped bring down inflation to the lowest rate since March.Food and drinks, as well as alcohol and tobacco, were the biggest factors pulling down on overall prices.​Economists think that the latest data means the Bank of England will be encouraged to reduce interest rates when policymakers next meet on Thursday.

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