UK Inflation Drops to 3.9%, Strengthening the Case for Rate Cuts

For the second consecutive month UK inflation beat market consensus. In November, headline inflation came in at 3.9%, while economists were expecting 4.4%, according to the Financial Times. The month before, actual inflation of 4.6% beat the consensus of 4.8%. The larger than expected drop fuels market expectations for rate cuts next year as central banks held rates last week with the Fed hinting at rate cuts next year.