Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month

The Bank of England's Monetary Policy Committee (MPC) uses interest rates to put a brake on the nation's spending.

The Bank of England uses CPI inflation as a key indicator in its monetary policy decisions, aiming to keep inflation close to a target set by the Government, typically around 2 per cent per year.

LONDON (Reuters) - British inflation unexpectedly slowed last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by finance minister Rachel Reeves after recent a market selloff.

The fall in the headline rate of inflation from 2.6 percent to 2.5 percent was unexpected and positive news for the Chancellor Rachel Reeves.

However, it means the Consumer Prices Index (CPI) - the main measure of inflation - remains stubbornly above the Bank of England’s target of 2%. The Office for National Statistics (ONS ...

Tumbling retail sales are set to pile more pressure on Andrew Bailey and his colleagues at the Bank of England to cut interest rates further and faster...

The Bank of England should move quickly to bring down interest rates given signs of a slowdown in Britain's economy, Alan Taylor, the BoE's most recently appointed interest rate setter, said on Wednesday.

House prices in Doncaster increased in November, rising more than the average across Yorkshire and the Humber, new figures show.

The good news is not expected to last as inflation creeps up in the coming months as the rise in employer’s national insurance contributions arrives in April, higher VAT on school fees kicks in and road taxes rise. Add to that rising oil prices that could translate into higher costs for homes, transport and related services.

The Bank of England looks set to resume cutting interest rates next month after official data revealed weaker inflation and anaemic economic growth.