According to data released on Wednesday by the Office for National Statistics, UK consumer price inflation slowed to 3.6% in October, down from 3.8% in September, boosting hopes of a potential Bank of England interest rate cut in December. The slowdown was largely driven by falling gas and electricity prices following adjustments to Ofgem’s energy price cap, though food inflation remains stubbornly high at 4.9%, up from 4.5% the month before. Economists note that while households are still under pressure, the downward trajectory in headline inflation offers some relief. The market reaction was fairly subdued, with the pound down 0.6% against the dollar at $1.307, and gilt yields nearly unchanged.
The slowdown was largely driven by falling gas and electricity prices following adjustments to Ofgem’s energy price cap, though food inflation remains stubbornly high at 4.9%, up from 4.5% the month before.
Across the Atlantic, Nvidia delivered a blockbuster set of results for the three months to the end of October. The company reported record revenue of $57bn, up 62% year-on-year, with net income soaring 65% to $31.9bn. CEO Jensen Huang highlighted “off the charts” demand for its new Blackwell AI chips, which have quickly sold out across cloud providers. Nvidia also issued strong guidance, forecasting $65bn in revenue for the current quarter, well above analyst expectations. The results underscore Nvidia’s dominance in the AI hardware market and its central role in powering the global boom in artificial intelligence. The share price rose 4.5% in early trading on Thursday, before closing out the day 3.1% lower.
Nvidia also issued strong guidance, forecasting $65bn in revenue for the current quarter, well above analyst expectations. The results underscore Nvidia’s dominance in the AI hardware market and its central role in powering the global boom in artificial intelligence.
Meanwhile, UK households are bracing for a modest increase in energy costs. Ofgem confirmed that the energy price cap will rise by 0.2% from January to March 2026, lifting the average annual dual-fuel bill from £1,755 to £1,758. While the increase equates to just 28 pence per month, it comes as a disappointment after forecasts had suggested bills might fall. Analysts point out that wholesale energy prices have declined, but volatility in the market has forced the regulator to act cautiously. The rise, though small, will add to the financial strain many households already face this winter.
Our specialist's final thought
"While the increase equates to just 28 pence per month, it comes as a disappointment after forecasts had suggested bills might fall. Analysts point out that wholesale energy prices have declined, but volatility in the market has forced the regulator to act cautiously."
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