| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | United Kingdom | HICP, Y/Y | December | 2.6% | 2.6% | 2.5% |
| 07:00 | United Kingdom | HICP ex EFAT, Y/Y | December | 3.5% | 3.4% | 3.2% |
| 07:00 | United Kingdom | HICP, m/m | December | 0.1% | 0.4% | 0.3% |
| 07:45 | France | CPI, m/m | December | -0.1% | 0.2% | 0.2% |
| 07:45 | France | CPI, y/y | December | 1.3% | 1.3% | 1.3% |
| 10:00 | Eurozone | Industrial production, (MoM) | November | 0.2% | 0.3% | 0.2% |
| 10:00 | Eurozone | Industrial Production (YoY) | November | -1.1% | -1.9% | -1.9% |
GBP traded mixed against other major currencies in the European session on Wednesday as investors assessed the UK’s consumer price index (CPI) data, which showed a deceleration in price growth in December, prompting markets to increase bets on Bank of England interest-rate decreases this year.
The pound strengthened slightly versus USD, EUR and CAD, and weakened versus SEK, JPY and AUD.
The Office for National Statistics (ONS) announced that the UK headline CPI jumped 2.5% YoY in the final month of 2024, following a 2.6% YoY surge in the previous month. Meanwhile, the core CPI climbed 3.2% YoY, sharply easing from 3.5% YoY in November. Economists had predicted the headline inflation rate to remain unchanged at 2.6% YoY and the core measure to decelerate to 3.4% YoY.
Cooler-than-anticipated data prompted markets to recalibrate their rate cut forecasts, adding 12 basis points of expected easing by the end of the year. Thus, they now see two 25-basis-point rate decreases in 2025.