Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month.

Inflation has fallen to 2.5 per cent in a boost for Chancellor Rachel Reeves as she faces criticism over market turmoil and volatility in the value of the pound. 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.

Inflation falls for the first time in three months, sparking expectations rates may be cut to 4.5% in February.