Ofgem energy price cap forecast to fall by 14% in April; UK inflation dips to 3.9% – as it happened

Typical household bill predicted to fall to 1,660; pound drops below $1.27 as data adds pressure on Bank of England to lower interest rates

Let them eat cake! Prices of a number of bread products, including white and wholemeal sliced loaves, and packs of cakes all fell between October and November, but rose a year ago.

Other smaller downward contributions to the change in the inflation rate came from meat; milk, cheese and eggs; and soft drinks. The only partially offsetting upward effect came from fruit, where prices of strawberries rose this year by more than a year ago.

Yet in absolute terms, core inflation in Britain is still more than twice the Bank of England's 2% inflation target. And even though the pace of easing is more than welcome, the Bank of England is still last in line to join the pivot party.

Therefore, hawkish BoE expectations should limit the pound selloff if, of course, investors continue to divest from the US dollar on the back of softening Fed expectations.