Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
UK consumer prices rose by 2.3% in the 12 months to April, down from 3.2% in March, the Office for National Statistics said on Wednesday. It was the lowest year-on-year headline reading since July 2021, but came in higher than the expected deceleration to 2.1%
Falling gas and electricity prices resulted in the largest downward contributions to the monthly change in annual CPI rates, while the largest, partially offsetting, upward contribution came from motor fuels, with prices rising this year but falling a year ago. Core CPI rose by 3.9% in the 12 months to April 2024, down from 4.2% in March. The CPI goods annual rate turned negative, falling from 0.8% to -0.8%, while the CPI services annual rate eased slightly, from 6.0% to 5.9%.
Despite the modest overshoot in headline inflation versus expectations, there was little to deter the Bank of England from a summer rate cut. However, the continued strength of service sector inflation will, for now, keep the MPC focussed on a data-dependent rate path over coming quarters. (see MNI INTERVIEW: BOE Models Can Ditch 2% Inflation Expectations)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.