Inflation & Prices
Strong UK Inflation Diminishes Sunak’s Hopes for June Rate Cut
- Prices increased 2.3% in April, compared with 2.1% expected
- Investors unwind wagers that BOE will begin easing in June
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Stronger-than-expected British inflation prompted traders to sharply pare back bets on interest rate cuts and denied Prime Minister Rishi Sunak a totemic economic victory.
The Consumer Prices Index rose 2.3% from a year ago in April, the Office for National Statistics said on Wednesday, compared with 2.1% forecast by economists. While the data put the Bank of England’s 2% inflation target within reach and was the lowest level since a cost-of-living crisis began to take hold almost three years ago, it was at the upper end of what economists had been anticipating.