| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | HICP, Y/Y | September | 2.2% | 1.9% | 1.7% |
| 06:00 | United Kingdom | HICP ex EFAT, Y/Y | September | 3.6% | 3.4% | 3.2% |
| 06:00 | United Kingdom | HICP, m/m | September | 0.3% | 0.1% | 0% |
GBP fell against other major currencies in the European session on Wednesday as investors bet on faster interest rate decreases by the Bank of England after the data showed the UK's inflation dropped below the central bank’s 2% target and economists’ forecast in September.
The Office for National Statistics (ONS) reported that Britain’s consumer prices increased 1.7% YoY last month, sharply decelerating from 2.2% YoY in August. This marked the weakest annual increase in UK consumer prices since April 2021 and surprised economists who had expected a 1.9% YoY gain.
The latest inflation data prompted investors to recalibrate their outlook for the BoE’s policy easing this year.
According to Bloomberg, markets are now seeing the British central bank to cut its benchmark rate both in November and December, having previously expected only one decrease by the end of 2024.
Earlier this month, the BoE’s governor Andrew Bailey acknowledged that the policymakers could become a “bit more aggressive” in policy easing if inflation in the UK continues to decline.