Slowing US inflation rate raises hopes cost of living crisis may have peaked

Pound surges and stock markets rebound as US consumer price index drops from 8.2% to 7.7% in October

Stock markets rebounded and the pound surged on Thursday after the US reported a lower than expected inflation rate for October, fuelling hopes that the cost of living crisis may have peaked.

Shares on the London exchange jumped after US inflation dropped from 8.2% in September to 7.7% in October, with the FTSE 100 rising 1% and the FTSE 250 gaining 3.9%.