Stocks welcomed weak UK inflation data as stocks rose slightly and European futures are now slightly higher as bond yields are likely to fall.
Today's weak inflation data also raises the odds that tomorrow will be the latest rate hike from the Bank of England and they join the ranks of the Fed and ECB in pausing.
The Office for National Statistics notes that the most prominent contributors to the decline in readings are lower food prices, accommodation, and surprise in lower service inflation which is good news for the economy and the Bank of England. That gives more flexibility to the bank's monetary policymakers.
Markets have already largely embraced the view that this week the Bank of England is likely to make the latest interest hike, and today's inflation data will surely help it embrace a strong case for not raising interest rates in the future and reaching 6% levels as long as the trend remains on the current track.
