Britain’s CPI slows from 41-year high ‎

Official data for consumer prices in Britain showed that inflation fell more than expected in November to 10.7 percent from 11.1 percent in October, the highest in 41 years, providing some room for the Bank of England as it prepares for a new hike in interest rates.

Economists polled by Reuters expected inflation to decline to 10.9 percent.

Inflation in the United States and the eurozone also fell more than expected last month, raising hopes that the current wave of inflation may have already peaked.

“Prices are still going up, but less than they did at this time last year, and the clearest example is vehicle fuel prices,” said Grant Fitzner, chief economist at the Office for National Statistics.

The Bank of England is trying to combat inflation well above its 2 percent target and has raised interest rates sharply over the past 12 months.

Most economists expect the Bank of England to raise interest rates again on Thursday to 3.5 percent from 3 percent, even as inflation appears to have peaked, giving hard-pressed households little respite.

Last month, the Bank of England said that Britain was heading towards a long-term recession, with inflation not likely to return to the target rate before the start of 2024, while a government budget watchdog warned of recording the largest contraction in living standards since records began in the fifties of the last century. ‏

“It is important that we take the difficult decisions required to tackle inflation,” UK Finance Minister Jeremy Hunt said after the latest inflation data.