Anna 
In Wednesday’s London session, the Pound Sterling (GBP) staged a strong rebound following the release of robust Consumer Price Index (CPI) data by the United Kingdom Office for National Statistics (ONS). The CPI for March exceeded economists’ expectations, indicating a stronger-than-anticipated inflationary pressure in the UK economy. However, despite surpassing estimates, inflationary pressures have moderated from February levels, suggesting that the Bank of England’s (BoE) higher interest rates may be helping to alleviate price pressures.
Additionally, producer price inflation has shown signs of slowing, indicating a potential easing in prices of goods and services at factory gates. This trend suggests that businesses are adjusting prices downward in anticipation of subdued demand.
The slightly higher inflation figures could raise questions about expectations for a rate cut by the BoE in November. However, recent employment data released on Tuesday suggested a cooling job market in the UK. The Unemployment Rate surged to 4.2% in the three months ending February, exceeding expectations of 4.0% and surpassing the previous release of 3.9%. Moreover, the number of employed individuals fell by 156,000 in the three months to February, a larger decline compared to the 89,000 jobs lost in the previous quarter.
