UK inflation slowed more than expected to 3.2% in November, down from 3.6% in October, and its lowest level in eight months. The drop was driven by falling food and drink prices, strengthening the case for a Bank of England rate cut this week. Core inflation also eased, and with unemployment rising to 5.1% and GDP shrinking in October, signs are growing that the UK economy is under strain. BoE Governor Andrew Bailey has suggested he supports a further cut to 3.75%, and markets are pricing in at least one more cut by April. Following the data, sterling weakened 0.7% against the dollar, and two-year gilt yields fell 6 basis points, reflecting the market's shift in rate expectations.