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UK Inflation Drops to 3.6%, Rate Cut Expected

11/19/2025

23 5 Full Breakdown

Summary

UK Inflation Decline

The United Kingdom's inflation fell to 3.6% in October 2025 from 3.8% in September, the first decline in five months.
The drop was driven by lower gas and electricity prices, while food inflation rose to 4.9%.
Inflation remains above the 2% target, and economists expect a December Bank of England rate cut if the budget boosts growth.

Summary

Canada's Inflation Drop

Canada's inflation rate fell to 2.2% in October as gasoline prices dropped 9.4%.
Core inflation remains mixed, with indicators still above the Bank of Canada's 2% target.
Grocery inflation eased to 3.4%, but food prices still rise faster than overall inflation.
The Bank of Canada remains cautious about rate cuts, with 30% odds by April.
Persistent supply chain issues and higher insurance costs add to the burden on consumers.

History

Historical Context

The UK's inflation crisis has deep roots, notably the 1975 peak of 24.2% that led to the establishment of the Bank of England's inflation target. In 2022, inflation soared to 11.1% due to global factors like the COVID-19 pandemic and the Ukraine war. As of October 2025, inflation stands at 3.6%, reflecting ongoing economic challenges, particularly for low-income households.

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UK Inflation Decline

The United Kingdom's inflation fell to 3.6% in October 2025 from 3.8% in September, the first decline in five months.
The drop was driven by lower gas and electricity prices, while food inflation rose to 4.9%.
Inflation remains above the 2% target, and economists expect a December Bank of England rate cut if the budget boosts growth.

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