Inflation Slows, Borrowing Costs May Drop
Update: 2025-12-17
Description
Inflation rises by 3.2% year-on-year, with chocolate prices surging 17%. However, the rate of inflation is slowing down, driven by essential items, offering relief for those feeling the cost of living squeeze. Food prices have dropped, with beef and veal rising but olive oil, flour, pasta, and sugar seeing price drops. This slowing inflation increases the likelihood of the Bank of England cutting interest rates, making borrowing cheaper but potentially lowering returns for savers. Policymakers advise considering stocks and shares for better long-term returns.
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