Home Money LIVE BUSINESS: Inflation falls to 2.5%; Serco wins $247 million contract; Fuller’s enjoys a strong Christmas

LIVE BUSINESS: Inflation falls to 2.5%; Serco wins $247 million contract; Fuller’s enjoys a strong Christmas

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LIVE BUSINESS: Inflation falls to 2.5%; Serco wins $247 million contract; Fuller's enjoys a strong Christmas

The consumer price index fell to 2.5 per cent in the year to December amid falling hotel prices, according to the Office for National Statistics.

Companies with today’s trading reports and updates include Serco, Fuller’s, Currys, Hays, Vistry Group and Frontier Developments.

Inflation falls marginally

“December’s fall in inflation will not last long”

Thomas Pugh, economist at RSM UK, comments on the latest UK inflation figures:

December’s inflation drop won’t last long. The combination of businesses going through the huge budget-imposed increase in labor costs, tax increases and rising energy prices means inflation will top 3% in the spring, forcing Governor Bailey to write his first letter to Rachel Reeves.

Falling inflation in December raises the chances of a rate cut in February, but rising inflation this year means the Bank of England will cut rates cautiously.

The inflation rate falls from 2.6% to 2.5%

Embattled Rachel Reeves was offered a surprise respite today as inflation submerged unexpectedly.

The owner CPI The inflation rate fell to 2.5 percent in December from 2.6 percent the previous month, and core inflation also slowed.

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