|06:00||United Kingdom||Producer Price Index - Output (YoY) ||April||8.5%|| ||5.4%|
|06:00||United Kingdom||Producer Price Index - Input (YoY) ||April||7.3%||5.4%||3.9%|
|06:00||United Kingdom||Producer Price Index - Input (MoM)||April||0.2%||0.2%||-0.3%|
|06:00||United Kingdom||Producer Price Index - Output (MoM)||April||0%|| ||0%|
|06:00||United Kingdom||Retail Price Index, m/m||April||0.7%||1.2%||1.5%|
|06:00||United Kingdom||HICP ex EFAT, Y/Y||April||6.2%|| ||6.8%|
|06:00||United Kingdom||Retail prices, Y/Y||April||13.5%||11.1%||11.4%|
|06:00||United Kingdom||HICP, Y/Y||April||10.1%||8.2%||8.7%|
|06:00||United Kingdom||HICP, m/m||April||0.8%||0.8%||1.2%|
|08:00||Germany||IFO - Expectations ||May||91.7||91.9||94.8|
|08:00||Germany||IFO - Current Assessment ||May||95.1||94.8||94.8|
|08:00||Germany||IFO - Business Climate||May||93.4||93||91.7|
|10:00||United Kingdom||CBI industrial order books balance||May||-20||-19||-17|
GBP traded mixed against other major currencies in the European session on Wednesday as investors weighed the UK inflation report for April.
The pound rose versus AUD and CAD, declined versus EUR and JPY, and changed little versus USD and CHF.
The Office for National Statistics (ONS) reported earlier today that the annual inflation rate in Britain fell to 8.7% in April from 10.1% in March. That marked the lowest rate since March 2022 but was above economists’ forecast of 8.2%. Meanwhile, the core annual inflation rate unexpectedly increased to 6.8% from 6.2% in the previous month. That represented the highest rate since March 1992.
The data heightened inflation concerns and put pressure on the Bank of England (BoE) to continue its rate-hiking campaign.
According to Bloomberg, markets are now betting for the BoE’s rates to peak at around 5.5% compared to 5.1% seen a day ago. This implies rate increases of nearly 100 basis points (or at least three 25-basis-point hikes) from the current level of 4.5%. For the BoE’s next meeting in June, markets are pricing in a rise of 25 basis points.