British underlying inflation hit the government's 2.5 per cent target for the fourth month in a row in November, official figures showed yesterday but the clamour for interest rate cuts showed no signs of letting up.

The Office for National Statistics said RPIX, which excludes volatile mortgage interest payments, was last lower four years ago. Headline inflation, meanwhile, fell to 3.0 per cent in November, its lowest rate since June last year.

But with all the economic signals pointing to a sharp slowdown in growth next year, economists said the Bank of England would remain under pressure to cut interest rates, perhaps as early as January.

The Bank's Monetary Policy Committee has already lopped 125 basis points off rates in the last three months, reversing all the rises it has made since taking control of monetary policy in May last year. Rates now stand at 6.25 per cent. The interest rate futures market fell slightly on the data, disappointed underlying inflation had not dipped below its 2.5 percent target.