UK March CPI +2.6% vs +2.7% y/y expected ...Middle East

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UK March CPI +2.6% vs +2.7% y/y expected
Prior +2.8%Core CPI +3.4% vs +3.4% y/y expectedPrior +3.5%

The readings are more or less in line with estimates, with the headline being a touch softer than expected. The market was pricing in ~80% odds of a rate cut for next month, so this won't do anything to derail that considering the other factors in play.

Looking at the details, services inflation (in core terms) did show some slowing as it went down from 5.0% last month to 4.7% in March.

    This article was written by Justin Low at www.forexlive.com.

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