Data released by the Office for National Statistics (ONS) on Wednesday revealed that the United Kingdom’s Consumer Price Index (CPI) recorded a 2.3% increase over the year in April, following a notable 3.2% rise in March. This figure exceeded market forecasts, which had projected a growth of 2.1%.
Furthermore, the Core CPI, which excludes volatile food and energy items, expanded by 3.9% year-on-year in April, a slight deceleration from March’s 4.2% uptick but surpassing the estimated 3.6% print.
The April Services CPI in the UK witnessed a 5.9% year-on-year rise, marginally lower than the 6.0% increase observed in March.
On a month-on-month basis, the UK Consumer Price Index increased by 0.3% in April, marking a slowdown from the 0.6% acceleration recorded in March but surpassing the expected 0.2% figure.
Prime Minister Rishi Sunak commented on the UK inflation report, stating, “Today marks a major moment for the economy, with inflation back to normal.”
In response to the UK CPI data, the GBP/USD pair initially surged towards 1.2750, reflecting a positive sentiment, before retracing to approximately 1.2740, where it currently fluctuates. The pair is trading 0.27% higher for the day.
