In an unexpected move the UK inflation rate dropped to 2.5% in December as price rises slow
Figures out this morning show that inflation effectively stabilised last month, up 2.5% in year to December, down from 2.6% the month before.
Core inflation fell from 3.5% to 3.2%.
There will be a ‘sigh of relief’ in Downing Street and the Bank of England, and could mean an interest rate cut next month, says Michael Saunders, a former member of the Bank’s Monetary Policy Committee told the BBC
The Chancellor Rachel Reeves wrote on X
“There is still work to be done to help families with the cost of living.
That’s why kickstarting economic growth is the number one priority of this Government.
I will fight every day to deliver that growth and make every part of Britain better off.”
