FX.co ★ UK Core CPI Dips into Negative Territory for First Time Since 2023

In a surprising turn of events, the United Kingdom's Core Consumer Price Index (CPI) for November 2025 slipped into negative territory, marking a decrease of 0.2% compared to the previous month. This marks a significant shift from October's data, where the Core CPI registered a 0.3% increase. The latest figures were updated and released on December 17, 2025.

This downward trend in the Core CPI—a key inflation measure excluding volatile items such as food and energy—might suggest a deceleration in underlying inflation pressures within the UK economy. Economists may view this reduction as a sign of diminishing consumer demand or improved supply chains, reducing cost pressures.

The decline raises questions about the monetary policy trajectory of the Bank of England, as persistent weak inflationary indicators could prompt further policy easing or a reevaluation of interest rates. These developments create an air of uncertainty, highlighting a key area for investors and policymakers to monitor as they navigate the economic landscape moving into 2026.