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UK Inflation Cools While US Sees Uptick as Economic Sentiments Shift

UK inflation drops to 2.5% in December, easing pressure on government; US inflation rises to 2.9%, complicating rate cut forecasts.

Overview

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In December, UK inflation dipped to 2.5%, helping reduce government borrowing costs and raising expectations for potential Bank of England rate cuts. Meanwhile, US inflation rose to 2.9%, driven by energy prices. Core inflation in the US held at 3.2%. Concerns over US tariffs under President-elect Trump add uncertainty. Analysts suggest the reduced UK inflation offers the Bank of England more leeway for interest rate adjustments, as UK bond yields fell significantly, providing some relief amid broader global market volatility. The economic outlook remains cautious as rising energy prices could impact future inflation.

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UK inflation: Why a small drop matters to you
BBC NewsBBC News·6M·
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CPI: Egg prices surge as US inflation picks up
BBC NewsBBC News·6M·
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Inflation mixed but with encouraging signs in December
AxiosAxios·6M·
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Inflation speeds up, ends 2024 at 2.9 percent
The HillThe Hill·6M·
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Inflation accelerated as expected in December
Business InsiderBusiness Insider·6M·
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History

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  • 6M
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    4 articles
  • 6M
    BBC News logo
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    4 articles
  • 6M
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