British inflation slowed unexpectedly last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by Finance Minister Rachel Reeves after a market selloff.

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world A reprieve for the UK gilts market will be welcome after a torrid week.

Inflation in the U.K. unexpectedly fell in December, a move that has bolstered expectations that the Bank of England will cut interest rates again next month and relieved some pressure on the U.K. government following the recent turbulence in financial markets.

UK inflation unexpectedly dipped in December for the first time in three months as hotel prices fell and tobacco costs eased. Prices rose 2.5% in the year to December, down from 2.6% the month before,

Inflation cooled to 2.5% at the end of the year, making it more likely that the Bank of England will continue to lower its key interest rate.

UK inflation unexpectedly slipped back for the first time in three months in December, keeping alive hopes of a Bank of England interest-rate cut next month.