London stocks were set to rise at the open on Wednesday as the latest UK inflation data cemented expectations of a rate cut this week by the Bank of England.
The FTSE 100 was called to open around 50 points higher.
Figures released earlier by the Office for National Statistics showed inflation fell by more than expected in November, to the lowest level for eight months.
The consumer prices index rose by 3.2% in the 12 months to November, down from 3.6% in October. Consensus had been for 3.5%.
The fall will add weight to growing expectations the Bank of England will cut interest rates for the fourth time this year when it meets tomorrow.
ONS chief economist Grant Fitzner said: "Lower food prices, which traditionally rise at this time of the year, were the main driver of the fall with decreases seen, particularly for cakes, biscuits, and breakfast cereals.
"Tobacco prices also helped pull the rate down, with prices easing slightly this month after a large rise a year ago.
"The fall in the price of women's clothing was another downward driver."
Adam Deasy, economist at PwC, said: "After keeping rates on hold in November, a few factors point to the Bank being able to cut on Thursday.
"The Autumn Budget included several measures that will mechanically reduce inflation going forward, such as rail fare and prescription charge freezes. Together with today's significantly softer CPI print and an uptick in the unemployment rate on Tuesday, the pain point for the UK economy may now be weakening demand rather than higher prices. At risk of counting our turkeys before they have hatched, 2026 could mark the long-awaited return to low and stable inflation."
In corporate news, UK government contractor Serco said it had appointed Proximus chief financial officer Mark Reid to the same role from 6 March, succeeding Nigel Crossley, who is retiring after 11 years with the company.
Reid has been with the Belgian telecoms operator for five years, where he also held the role of interim CEO of their international division while retaining group CFO responsibilities, Serco said in a statement.
Technical products and services supplier Diploma said it has appointed Wilson Ng to take over as group chief financial officer with immediate effect.
Diploma said a comprehensive internal and external selection process had been undertaken and that Ng was the standout candidate.
Ng joined Diploma in 2022 as group financial controller and has been acting CFO since August 2025.
Elsewhere, US regulators have approved GSK's Exdensur treatment for severe asthma with an eosinophilic phenotype, marking the first ultra-long-acting biologic with twice-yearly dosing for this condition.
The Food and Drug Administration's decision was based on clinical trial results which showed a "significantly lower rate of annualised asthma exacerbations" in patients receiving the treatment compared with a placebo.
An estimated 2m Americans live with severe asthma, half of which experience frequent exacerbations and hospitalisations requiring novel solutions.