| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | HICP, Y/Y | April | 3.2% | 2.1% | 2.3% |
| 06:00 | United Kingdom | HICP ex EFAT, Y/Y | April | 4.2% | 3.6% | 3.9% |
| 06:00 | United Kingdom | HICP, m/m | April | 0.6% | 0.2% | 0.3% |
GBP strengthened against other major currencies in the European session on Wednesday as the data showed the UK’s inflation depreciated less than anticipated last month, reinforcing expectations that monetary policy easing by the Bank of England might be delayed.
The Office for National Statistics (ONS) reported earlier today that Britain’s consumer price index (CPI) rose by 2.3% YoY in April, easing from a 3.2% YoY gain in March. Though the reading was the lowest since July 2021, it appeared to be a disappointment for economists, who had forecast a 2.1% YoY increase.
Hotter-than-expected UK inflation data increased the likelihood that the British central bank will not reduce its Bank Rate as soon as June.
After the latest UK CPI data, markets see little chance of a 25-basic-point rate cut at the BoE’s June meeting, Bloomberg says. A reduction in August is not now fully priced in either. Thus, the European Central Bank is now expected to start its policy easing cycle before the BoE next month.