BREAKING: UK CPI higher than expected. GBPUSD gains 0,4%

7:02 AM 21 May 2025

UK CPI YoY (April) 3.5% (Forecast 3.3%, Previous 2.6%)

  • CPI MoM 1.2% vs 1% exp. and 0.3% previously

UK Core CPI YoY 3.8% vs 3.6% exp. and 3.4% previously

  • Core CPI MoM 1.4% vs 0.5% previously

UK RPI MoM 1.7% vs 1.4% exp. and 0.3% previously

GBPUSD gained in first reaction to higher UK CPI data, pressuring Bank of England to not cut rates, however as for now the pair slightly loses, erasing early gains. Markets price the risk of stagflation and recession across the UK economy, because the high inflation numbers may stop the BoE from 'helping' the economy by monetary policy changes.

 

 

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