The UK’s CPI inflation dropped to 4.6% in October, the lowest level recorded in the last two years. The figure’s drop exceeded analysts’ expectations, with some economists noting that it has been the biggest fall since 1992. Despite the fact that inflation fell, the UK’s figures remain elevated when compared to the US and the eurozone. The British pound has lost ground against the US Dollar as analysts believe that the Bank of England could review its monetary policies.
Table of Contents
- US CPI inflation lower than expected In October
- US Retail Sales October Report
- UK Retail Sales to Fall in October?
- China Retail Sales Surprisingly Surprise on the Upside
US CPI inflation lower than expected In October
US inflation data surprised a little as headline and core CPI were both slightly lower than expected, at 3,2% and 4,0% respectively. Commenting on the CPI data, ING economists wrote that “the Federal Reserve has got to be pretty happy with this and unsurprisingly, it has reinforced market expectations that the policy rate has peaked. The January 2024 FOMC is expected to tighten by just 1.5bp, and more than 90bp will be cut by next year.