UK headline inflation may gradually align with eurozone levels, ending the unusual divergence that has persisted through 2025, according to Fitch Ratings. The easing of both headline and core inflation underpins the agency’s view that the Bank of England (BoE) will cut rates once more by year-end, followed by a further 50 basis points of easing in 2026.

UK headline CPI climbed by 1.3 percentage points (pp) this year to 3.8 per cent in September, while eurozone HICP has held near 2 per cent. Fitch attributes around half of this gap to energy costs.

UK electricity and gas inflation is currently above 9 per cent year on year (YoY), up sharply from minus 6.8 per cent in December 2024, largely due to Ofgem’s price-cap adjustments tied to wholesale gas prices. The divergence is expected to narrow as the October UK price-cap increase was limited to 2 per cent, compared with a 9.5 per cent rise in October 2024, Fitch said in a release.

“The combination of stubbornly high wage growth, alongside rising consumer inflation expectations, has left the Bank of England searching for the ECB’s ‘good place’. But we think that the weakening in the UK labour market means that wages and price inflation are now firmly on the way back down. We are sticking to our forecast for Bank Rate to fall to 3.75 per cent by year-end and to 3.25 per cent by end-2026,” said Jessica Hinds, director at Fitch Ratings.

UK headline inflation is expected to move closer to eurozone levels, with easing price pressures supporting Fitch Ratings’ view of one more BoE rate cut this year and further easing in 2026.
The CPI’s rise to 3.8 per cent and high energy inflation explain much of the gap.
Fitch says a softening labour market will pull wages and inflation lower, enabling rates to fall to 3.25 per cent by end of 2026.

Fibre2Fashion News Desk (HU)

South Korea’s Misto Holdings has posted steady growth in the third quarter of 2025, reporting consolidated revenue of 1,088 billion won (~$747 million), up 3.7 per cent year-on-year (YoY), and operating profit of 132 billion won, a sharp 41 per cent rise. The company credited the improvement to stronger brand performance, a better product mix, and favourable foreign-exchange movements.

The Misto segment generated 181 billion won in revenue, supported by Fila’s continued brand repositioning in Korea and the successful launch of the new Echappe series, which resonated strongly with Millennial and Gen Z consumers. Fila’s new brand experience centre in Biella, Italy, further enhanced global visibility. Restructuring measures in North America also helped reduce losses and strengthened overall profitability, Misto Holdings said in a press release.

Misto Holdings has reported revenue of 1,088 billion won (~$747 million) in Q3 2025, up 3.7 per cent YoY with operating profit rising 41 per cent to 132 billion won.
Fila’s repositioning and Acushnet’s 7.5 per cent revenue rise supported performance.
A 940-won dividend lifted shareholder returns to 220 billion won (~$151 million), achieving 44 per cent of the firm’s three-year target.

Acushnet delivered another robust quarter, with revenue rising 7.5 per cent YoY to 908 billion won. Misto Holdings’ board of directors approved a quarterly dividend of 940 won per share—its fourth consecutive special dividend—totalling around 50.4 billion won. This represents a 177 per cent year-on-year increase and reflects strong subsidiary performance and special dividends received from Full Prospect, its China joint venture.

The company has now achieved 44 per cent of its three-year shareholder-return target of up to 500 billion won for 2025-2027. Total returns so far amount to approximately 220 billion won (~$151 million), supported by 150 billion won in share buybacks earlier in the year and an additional 20 billion won in September.

“Despite a challenging external environment, Misto Holdings maintained stable performance in the third quarter, supported by disciplined operations and solid brand fundamentals. The fourth consecutive special dividend demonstrates our ongoing commitment to transparent, shareholder-friendly management and long-term value creation,” said Ho Yeon (Aaron) Lee, chief financial officer of Misto Holdings.

Fibre2Fashion News Desk (SG)