UK November CPI rose 3.2% YoY, below the 3.5% Reuters forecast, signaling easing inflation. Meanwhile, CJK RPI fell 0.5% MoM and RPIX dropped 0.4% MoM, reflecting weaker demand. The figures highlight diverging global trends, with the UK moderating inflation and CJK economies confronting deflationary risks.
Global inflation trends showed contrasting signals in November, with the UK reporting softer-than-expected consumer price growth and CJK (China, Japan, Korea) economies registering declines in retail price indices.
According to official data, the UK Consumer Price Index (CPI) rose 3.2% year-on-year, undershooting the Reuters poll forecast of 3.5%. This moderation suggests that inflationary pressures in Britain are easing, potentially giving the Bank of England more room to maneuver on monetary policy. Analysts note that falling energy costs and stabilizing food prices contributed to the slowdown, though core inflation remains a concern.
In contrast, the CJK region’s Retail Price Index (RPI) fell 0.5% month-on-month, compared with expectations of a flat reading (0.0%). Similarly, the RPIX (Retail Price Index excluding mortgage interest payments) dropped 0.4% month-on-month, signaling weaker consumer demand and possible deflationary risks. Economists highlight that sluggish household spending and cautious corporate investment are weighing on price levels across these economies.
Key Highlights
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UK CPI: +3.2% YoY vs. 3.5% forecast, indicating softer inflation momentum.
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CJK RPI: -0.5% MoM vs. 0.0% poll, showing contraction in retail prices.
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CJK RPIX: -0.4% MoM, reinforcing subdued consumer demand.
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Policy Implications: UK inflation moderation may influence BoE’s rate stance, while CJK deflationary signals could prompt stimulus measures.
Why It Matters
The data underscores diverging global economic trajectories: the UK is experiencing inflation moderation, while CJK economies face deflationary pressures. These trends will shape central bank strategies and investor sentiment heading into 2026.
Sources: Reuters, Bloomberg, Financial Times