The market reaction was clear after the recent hard upward pressure on British market rates – linked to distrust of the country's public finances.
The pound is falling against other currencies, and in the pricing of the derivatives market, actors are now counting on two rate cuts by the British central bank this year. Before Wednesday's inflation figures, there was great uncertainty about the second rate cut.
The December inflation rate can be compared to 2.6 percent in November and an average forecast of 2.6 percent for December, according to a compilation of forecasts made by Bloomberg.
The core inflation rate, where energy and food prices, among other things, have been excluded, fell to 3.2 percent in December. It was 3.5 percent in November and can be compared to an average forecast of 3.4 percent for December.
Compared to the previous month, consumer prices in the UK rose by 0.3 percent in December. Expectations were for an increase of 0.4 percent.
The British central bank, the Bank of England, has an inflation target of 2 percent.
