UK inflation fell more than expected in November to 3.9%, its lowest annual rate since September 2021. Economists had forecast a decline to 4.4%. Month-on-month, headline inflation fell 0.2%, versus a forecasted 0.1% increase. Core inflation was 5.1%, below estimates of 5.6%. The larger-than-expected declines fueled bets that the Bank of England will cut interest rates in 2024, sending UK bond yields lower. Falling prices for transport, recreation, and culture, and food and non-alcoholic beverages. contributed most to slower inflation.