The latest UK inflation data indicated that headline prices rose 2.5% YoY in December, slightly below market expectations, showing signs of price pressure softening.
The core CPI increased by 3.2% YoY, with services prices rising by 4.4% YoY, both figures signaling a notable drop from previous months and easing inflation concerns.
Despite inflation remaining above the Bank of England's 2% target, this morning's report is expected to reassure the Bank and the government regarding future monetary policy.
Current inflation figures heighten expectations for a 25bp rate cut at the upcoming MPC meeting, as signs of persistent inflation need to be addressed for faster easing.
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