A further cut to already low interest rates looks increasingly likely after official figures showed inflation falling to its lowest level for three years.
Markets are now pricing in a 64% chance that the Bank of England will propose another cut in interest rates, already at 0.75%, when its monetary policy committee meets on January 30.
A week ago that likelihood was priced-in at 5%.
Figures from the Office for National Statistics showed that the consumer price index fell to 1.3% in December, the slowest annual growth rate since November 2016.
Economists had been expecting no change from November’s 1.5%.
