The Consumer Price Index (CPI) increased by 7.0% year-on-year in March, compared to 6.2% in February. This is the highest 12-month inflation rate in the National Statistics series, which began in January 1997. It is also the highest rate in the historical modeled series since March 1992, when it was 7.1%. The figure has exceeded expectations, since the market consensus pegged the rise at 6.7%.
The monthly inflation rose 1.1% in March, three tenths above the 0.8% of February. Experts expected a slight reduction to 0.7%.
The annual core CPI has increased by 5.7%, exceeding the previous 5.2% and the 5.4% forecast, its highest level in several decades.
GBP/USD reaction
The GBP/USD It has reacted with a rebound of more than 25 pips that has taken it first to highs of the day at 1.3026, to later drop to the 1.3000 zone. Earlier in the Asian open, the pair fell to 1.2987, its lowest level in three days. At time of writing, the pound is trading against the dollar above 1.2994, down 0.05% on the day.
Source: Fx Street
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