The pound euro (GBP/EUR) exchange rate is falling to a level last seen in May 2023.
The pound is falling after BRC data showed UK retailers cut prices by 0.3% in October, marking the first monthly drop since March, driven by a 0.4% fall in food prices—the largest since 2020.
Annual food inflation eased to 3.7% from 4.2%.
The euro is rising despite Germany’s GfK confidence index dropping to -24.1 in November, amid concerns over wages.
The ECB is expected to keep rates unchanged at 2%, with inflation steady at 2.2% and as recent data showed growth inching higher.