UK November CPI data just released, year-on-year growth of 3.2%, below the previous 3.6% and also below market expectations of 3.5%. This is a positive signal of inflation easing.

What does better-than-expected data mean? The Bank of England may have more room to maneuver on interest rate cuts. For the crypto market, such economic data often influence macro liquidity expectations—interest rate cut cycles are generally more favorable for risk assets (including cryptocurrencies).

Of course, single-month data is just a reference; we need to see subsequent trend confirmation. But this round of CPI decline at least indicates that inflationary pressures are easing, which will have a chain reaction on the overall asset allocation outlook.