GBPUSD, H1
Inflation in the UK rose ahead of BoE. These data were released much higher More than expected, with CPI Headline hitting 10.4% From 10.1% last month, 0.6% Higher than the anticipated decline 9.8%. For policymakers, the jump in core Inflation from 5.8% To 6.2% y/y. The RPIThis is an important factor in wage negotiations. However, it also affects interest payments on inflation-linked bonds. 13.8%.
PPI Although output price inflation was slower than expected, it was still higher than forecast. 12.1% The price of oil is still very high, which suggests that more price rises are possible.
The data will likely force the BoE’s hand tomorrow and another rate hike looks much more certain now than before the release. However, expectations of a slowdown in pace are supported by the BoE’s impressive rate hikes and the fact that the financial markets remain nervous. Expectations are high for a 25bp Tomorrow’s hike will be more cautious than ever before, and we expect it to increase. PM Sunak As the UK’s cost of living crisis becomes more severe during mild Winters, as Spring arrives, this will put additional pressure on the UK.
Details for February show a significant jump in prices at restaurants and cafes, food and drinks, and…
