Inflation cooled to 2.5% at the end of the year, making it more likely that the Bank of England will continue to lower its key interest rate.

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

UK inflation unexpectedly fell to 2.5 per cent in December, sparking increased expectations of an interest rate cut by the Bank of England next month. The surprise decline from November's 2.6 per cent marked the first drop in inflation for three months.