To be ultra clear, prices are still rising. But they aren’t rising as rapidly as they were. And they aren’t rising as rapidly as the vast majority of analysts — not to mention the Bank of England — had expected.
The consumer prices index (CPI — the rate the Bank of England is meant to keep in a one percentage point band around 2%) is now rising at 3.9%. That’s down from 4.6% in October. Analysts had expected 4.3%, and at its most recent set of forecasts, the Bank had expected 4.6%.
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