UK inflation cools to 3.2%—rate cut hopes rise
UK inflation dropped to 3.2% in November, down from 3.6% in October—a bigger dip than most expected.
This shift has everyone watching the Bank of England closely, as many now think a rate cut could be just around the corner, especially amid concerns about rising unemployment and the economy shrinking last month.
What's behind the change?
Chancellor Rachel Reeves's latest budget raised £26 billion through new taxes and rolled out targeted support like energy bill relief and prescription changes.
The Bank of England says these moves could help push inflation even lower next year.
Why should you care?
If rates drop, it is expected to lead to cheaper mortgages and loans, potentially giving people more breathing room with their money.
The Bank's next meeting is a big one—any sign of a rate cut will matter for anyone juggling rent, bills, or student debt right now.