British consumer price inflation unexpectedly fell to 3.2% in November from 3.6% the month before, official figures showed on Wednesday, a day before the Bank of England is widely expected to cut interest rates.

Prices cooled more than expected in November, keeping the Bank of England on course for a fourth interest-rate cut of the year.

Sterling fell on Wednesday after British inflation unexpectedly fell sharply, a day before the Bank of England is widely expected to cut interest rates. The dollar rose as traders waited for U.S. inflation data for clues on the Federal Reserve's next move.

The Bank of England’s (BoE) final Monetary Policy Committee (MPC) meeting of 2025, scheduled for December 18, arrives amid strong conviction from financial markets: a festive interest rate cut is imminent.

The 25 bp cut on Dec 18 will bring the BOE’s rate to 3.75%, and is suggested as Britain’s ‘neutral rate’ Read more at The Business Times.

The FTSE surges 164 points to 9,849 Inflation falls more than expected Pound sinks as Bank of England rate cut nailed on 11am: FTSE roaring The FTSE is absolutely roaring, up 1.7%, while the rest of Europe is largely flat.

The inflation rate fell to 3.2% from 3.6%, a larger fall than analysts expected. Lower food prices were the main driver of the fall, "with decreases seen particularly for cakes, biscuits, and breakfast cereals",

The U.K.'s inflation rate cooled sharply to 3.2% in November, boosting the chances of the Bank of England cutting interest rates at its final meeting of the year on Thursday. Economists polled by Reuters had expected inflation to stand at 3.