Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

TOP SEARCHES

Stocks popular

Crypto

Currencies

CFD

Support

GBP Ignores Higher Than Expected UK Inflation

image
icon 22/05/24
icon 244

GBP Ignores Higher Than Expected UK Inflation

On Wednesday, the British pound inched but has trimmed most of those gains. GBP/USD traded at about 1.2703, 0.06% higher in the North American session.

In April, UK inflation fell sharply to 2.3% y/y. This was lower than March’s 3.2% and the lowest rate since July 2021. It was however higher than the market forecast of 2.1%. Inflation fell to 0.3% on a monthly basis, down from March’s 0.6% and slightly higher than the market forecast of 0.2%.

Food prices dropped while services inflation and higher gasoline prices put upward pressure on the CPI.

Core CPI dropped from 4.2% in March to 3.9% y/y but was higher than the market consensus of 3.6%. The monthly reading gain of 0.9% was higher than the gain of 0.6% in March and also higher than the market consensus of 0.7%.

Although the inflation report was generally positive, the increase in April’s core CPI dampened investors’ expectations for a June rate cut. The markets have decreased the pricing of a rate cut in June to only 18%, versus Tuesday’s 50%.

The Bank of England has made fighting inflation its top priority and the inflation rate is now getting close to the 2% target, after in October 2022 reaching a high of 11.2%.

Recomended for you

image

Crude Prices Drop After IEA Monthly Report

On Wednesday, crude prices dropped and gave back earlier gains after the IEA reduced its forecast for this year’s demand...

May 15, 2024
icon 349
May 15, 2024
icon 349
prev next
This site is registered on wpml.org as a development site.