Commenting on UK inflation slowing, signalling a potential rate cut rather than a hike

Commenting on UK inflation slowing, signalling a potential rate cut rather than a hike, Rupert Thompson, Head of Research at Kingswood, said: “UK inflation slowed in October to 1.5%, the lowest level since November 2016, helped by a fall in gas and electricity prices. Core inflation also remained subdued and was unchanged at 1.7%. These numbers follow hard on the heels of the downbeat economic data released earlier in the week which showed a slowdown in underlying wage growth, a fall in employment and the weakest GDP growth since 2010. Altogether, this crop of data suggests any move by the Bank of England over coming months is more likely to be a rate cut than a hike. Even so, the most likely outcome remains that the Bank remains on hold – particularly now there are signs the worst of the global economic slowdown is behind us.”