Array
Britain’s inflation fell more sharply than expected in November to 10.7 percent from October’s 41-year high of 11.1 percent, according to the official consumer prices data, offering some comfort to the Bank of England (BoE) as it prepares to raise interest rates again.
Economists polled by Reuters had forecast that the inflation rate would slip to 10.9 percent. U.S. and euro zone inflation too have both dropped more steeply than expected last month, raising hopes that the current wave of inflation may have peaked.
“Prices are still rising, but by less than this time last year with the most notable example of this being motor fuels,” said Grant Fitzner, chief economist at the Office for National Statistics.
The BoE is battling inflation that is far above its 2 percent target and has raised rates sharply over the past 12 months.
Economists mostly expect it will raise rates again on Thursday to 3.
