U.K. Inflation Drops Below Forecasts to Lowest Level in Over 2 Years
• U.K. inflation dropped to 3.9% in November, lowest level in over 2 years and below economists' forecasts
• Price growth slowed as fuel and food costs declined; core inflation fell to 5.1%, lowest since January 2022
• Lower inflation provides some relief for household budgets squeezed by high costs
• Bank of England expects to keep interest rates high for awhile, despite cooling inflation, due to still-high wage growth
• Policymakers want to see a more sustained decline in wages before certain inflationary pressures have eased