UK Inflation Eases as FTSE Rally Sharpens Focus on Economy and Rate Cuts
UK inflation cooled to 3.6% in October, marking its first decline since March and aligning with economist forecasts. Energy price moderation drove the drop, though food costs climbed 4.9%, maintaining pressure on households. The figure remains sharply above the Bank of England's 2% target, keeping rate cut speculation alive while offering policymakers limited breathing room.
Consumer pain persists despite the headline retreat. Staple food items—bread, cereals, fish—continued their upward march, rendering the slower inflation pace psychologically moot for shoppers. Energy bills provided partial relief year-on-year, but weak 0.1% Q3 GDP growth underscores the economy's fragility. The inflation dip signals a potential inflection point, yet the cost-of-living crisis retains its bite.
