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UK Inflation Set to Fall Amid Trade Changes

1/14/2026

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Summary

Story summary

Bank of England rate-setter Alan Taylor says UK inflation, at 3.2%, should hit 2% by mid-2026 due to substantial trade divergence from US tariffs on Chinese goods.
Chinese exports to the UK rose 7.8% in 2025 as China seeks alternative markets.
Taylor says easing price pressures could permit rate cuts.
The FTSE 100 rose 0.3% on mining stocks.
Traders are monitoring US tariff rulings and bank earnings.

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Story summary

Bank of England rate-setter Alan Taylor says UK inflation, at 3.2%, should hit 2% by mid-2026 due to substantial trade divergence from US tariffs on Chinese goods.
Chinese exports to the UK rose 7.8% in 2025 as China seeks alternative markets.
Taylor says easing price pressures could permit rate cuts.
The FTSE 100 rose 0.3% on mining stocks.
Traders are monitoring US tariff rulings and bank earnings.