UK inflationary pressure slows in October

CPI Inflation figures for the year to October have come in below consensus forecasts of 3.1%, holding flat at 3%. Though this level of inflation remains the highest the UK has seen in 5 years, the month-on-month increase of 0.1% represented a slowing of inflationary pressure from the previous month. The Bank of England's (BoE) recent interest rate hike was a step to address rising inflation since the Brexit vote, though further hikes over the coming years may be expected, as the BoE has signalled, if inflation does not return to the target rate of 2%. In response to the data, Sterling fell against major currencies, down 0.6% against the euro shortly after, adding to weakness seen this week amidst renewed political uncertainty in the UK and frustration over Brexit negotiations. UK government debt was also being bought after the news, whilst the FTSE 100 showed little reaction.