| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | HICP, Y/Y | March | 3.4% | 3.1% | 3.2% |
| 06:00 | United Kingdom | HICP ex EFAT, Y/Y | March | 4.5% | 4.1% | 4.2% |
| 06:00 | United Kingdom | HICP, m/m | March | 0.6% | 0.5% | 0.6% |
| 09:00 | Eurozone | Harmonized CPI, Y/Y | March | 2.6% | 2.4% | 2.4% |
| 09:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | March | 3.1% | 2.9% | 2.9% |
| 09:00 | Eurozone | Harmonized CPI | March | 0.6% | 0.8% | 0.8% |
GBP strengthened against other major currencies in the European session on Wednesday after data indicated that the UK’s consumer price inflation eased slightly less than forecast in March, supporting the view that the Bank of England will consider cutting its key interest rate later in the year.
The Office for National Statistics (ONS) reported earlier today that consumer prices in Britain surged 3.2% YoY last month, following a 3.4%YoY jump in February. Though the latest reading was the lowest since September 2021, it disappointed economists, who had predicted a 3.1% YoY increase. Meanwhile, the core consumer prices rose 4.2% YoY, the least since December 2021. Economists had expected the core annual inflation to ease to 4.1% in March from 4.5% in the previous
The upside surprise in the UK’s March inflation data prompted markets to trim their bets on the policy easing by the BoE’s this year. According to Bloomberg, they are now fully pricing in just one 25-basis-point rate cut from the British central bank in 2024. The move is seen to come by November. The chance of the second reduction is now estimated at around 50%.