Market insights

UK Inflation Higher Than Expected - MI220524

The UK inflation number was reported this morning.

Analysts had expected 2.1% annualised growth and it came in at 2.3%.

This caused an immediate leap in Pound rates as it takes pressure off the Bank of England to cut their base rate.

With little further scheduled news today it's a waiting game to see if the jump in Sterling rates hold or reality kicks in that the difference was only moderate.

The interesting takeaway is that the growth rate has substantially dropped from last month with the drop in gas and electricity prices being cited as the catalyst.

Business news is dominated by the inflation story. On paper it sounds good i.e. prices getting back under control. However the reality is the growth rate is still above the Bank of Englands target of 2%.

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Economic calendar

US: 18:00 FOMC Meeting Minutes

NZ: 22:45 Retail Sales

As ever we look forward to keeping you in the loop and look out for our next update.

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