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UK Inflation Falls to 3.6% — Turning Point or False Alarm?

MetaBuilder  · 2025-11-19 ·  8 days ago
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With UK inflation falling to 3.6% in October after peaking, is the economy turning a corner — or is the cost-of-living crisis still far from over?

5个答案

  • Lower inflation = potential rate cuts = better conditions for equity and crypto. Could be a good time to watch for entry points.

  • The latest UK inflation data showing a drop to 3.6% for October is welcome news.  On the surface, it suggests price pressures might be easing, giving households some relief after months of rapid increases. The fall is linked to cheaper energy bills and softer hotel-room price rises, though food inflation remains stubborn at around 4.9%.



    But before popping the champagne, it’s important to look deeper. First, 3.6% is still well above the target rate of 2% that the Bank of England aims for. That means while things are improving, the inflation problem isn’t solved. Service-price inflation, wage growth and global supply chain risks still loom. Second, many households are still facing squeezed budgets—just because inflation is falling doesn’t mean prices are affordable or that real incomes are rising.



    From a market perspective, this kind of decline increases hopes that the Bank of England may begin cutting interest rates soon, which could boost risk assets including crypto. But for consumers and savers, the cost-of-living crisis remains real—especially for essentials like food and energy.



    In short: yes, the inflation fall is a legitimate sign of progress, but it doesn’t mean the crisis is over. The next stages matter: are prices truly stabilising, do wages keep up, and will policy follow through? The story isn’t done yet—it’s just entered a new chapter.

  • Drop in inflation? Sure, but food prices at 4.9% and real incomes still being squeezed means many people haven’t felt the benefit.

  • It’s a move in the right direction, but 3.6% is still high. I’ll believe the crisis is over when inflation’s closer to 2% and prices feel normal.

  • Finally, some good news! 3.6% inflation could mean things are calming down — maybe we’ll see rate cuts and relief soon.

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