For the second month in a row, the falls in CPI inflation from 4.6% in October to 3.9% in November (consensus forecast 4.4%, CE 4.5%, BoE 4.6%) and services CPI inflation from 6.6% to 6.3% (CE forecast 6.6%, BoE 6.9%) were bigger than expected. These data bring UK CPI inflation closer to the rates in the US (3.1%) and the euro-zone (2.4%) and will further fuel market expectations that the Bank of England will start cutting interest rates in May next year.
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