December's inflation dip was a rare piece of positive financial news, but don't get used to it. Prices will be rising soon enough.

The Chancellor is accused of pushing up borrowing costs by enough to fund more than one and a half million hip replacements

UNDER-pressure Rachel Reeves was given a glimmer of hope as inflation fell — raising interest rate cut hopes. The Chancellor saw inflation sink 0.1 per cent to 2.5 per cent in December, the drop

Surprise inflation fall eases pressure on Reeves as markets predict interest rate cut - The Consumer Prices Index figure fell to 2.5%, still above the Bank of England’s 2% target

A fall in December's CPI inflation of 0.1 percentage points to 2.5% is marginal, but by being below expectations it delivered an above-expectations boost to Rachel Reeves. The chancellor has been under intense scrutiny for the last week as UK borrowing costs have risen (in line with US and European peers) and the value of the pound has fallen.

Falling inflation and borrowing costs are good news for the Chancellor but the Budget watchdog will not make a call on market conditions until next month

The removal vans can be cancelled, and the shortlist of potential successors can stop measuring up the curtains at Number 11 Downing Street. With today’s figures showing a slightly larger than expected fall in inflation,

By Suban Abdulla and David Milliken LONDON (Reuters) -British inflation slowed unexpectedly last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by Finance Minister Rachel Reeves after a market selloff.

In November, the Consumer Prices Index (CPI) came in at 2.6 per cent, where petrol, train travel, and live entertainment pushed up prices.

A reprieve for the UK gilts market will be welcome after a torrid week.

The inflation figures come amid a sell-off in the gilt market, which has raised doubts about the government's fiscal plans.

Inflation has fallen to 2.5 per cent in a boost for Chancellor Rachel Reeves as she refused to rule out the possibility of an emergency budget. The Consumer Prices Index ( CPI) figure is still above the Bank of England’s 2 per cent target, but is lower than November’s 2.6 per cent.