National Gallery and Church of St. Martin in Polje at dusk. Trafalgar Square, London, UK
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The UK economy grew at a weak pace of 0.1% in November, data from the Office for National Statistics showed on Thursday.
That compared with the 0.2% month-on-month growth expected by economists polled by Reuters.
Monthly real gross domestic product (GDP) fell 0.1% in October, following a 0.1% decline in September and a 0.2% rise in August.
The data comes as the Bank of England considers whether to cut interest rates at its next meeting on February 6.
A lower-than-expected annual inflation print for December, released on Wednesday, fueled broad expectations of a 25 basis point rate cut when the central bank meets.
Such a cut would bring the key interest rate from 4.75% to 4.5%, although BOE policymakers will take into account inflationary pressures, such as resilient wage growth and uncertainty about Britain’s economic outlook. The inflation target of the central bank is 2%.
The Labor government and the Treasury have come under pressure in recent weeks over rising government borrowing costs and questions about their fiscal plans and higher tax burdens on businesses. Both were given a reprieve on Wednesday, however, when the latest inflation data showed that consumer price growth cooled more than expected to 2.5% in December, with core price growth slowing further.
The print was below the expectations of economists polled by Reuters, who had forecast the inflation rate to be unchanged from 2.6% in November.
Core inflation, which excludes more volatile food and energy prices, was 3.2% in the twelve months to December, down from 3.5% in November.
The UK inflation rate hit a more than three-year low of 1.7% in September, but monthly prices have since accelerated due to higher fuel costs and service prices. In December, the annual inflation rate of services amounted to 4.4%, which is a decrease compared to 5% in November.
The UK economy has been in a tight spot lately, and economists are expressing concern slow growth prospects of the country and concerns about disruption from external factors, such as potential trade tariffs after President-elect Donald Trump takes office on Jan. 20, along with internal fiscal and economic challenges that have plagued the Labor government and the finance ministry since the budget in October.
