UK inflation unexpectedly slows to 2.5% in December

Ruth Gregory, deputy chief UK economist at the consultancy Capital Economics, said the inflation data would be “welcome news for the Bank [of England] and the chancellor”.

About half of the drop in services inflation was driven by airfares, according to Ruth Gregory of Capital Economics. Airfares growth was the third-weakest for a December on record.

Ruth Gregory, economist at consultancy Capital Economics, said the movements seen so far would be sufficient to more than erase the headroom against the current budget rule, with the Treasury now on...