The customer looks at goods on the shelf in the supermarket on January 15, 2025 in London, England.
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The annual inflation rate in Great Britain reached 3.5% in April, achieving the above expectations of analysts, in accordance with the data published by the Office of National Statistics (ONS) on Wednesday.
Economists surveyed by Reuters expected that the consumer price indicator would reach 3.3% in twelve months to April.
The latest version of the data is contrary to the recent coolant inflation trend, and the price growth rate slowed down to 2.8% in February and 2.6% in March.
Basic inflation, which excludes more unstable energy, food, alcohol and tobacco, increased by 3.8% per year to April, compared to 3.4% in twelve months to March.
The biggest contributions up to the monthly change of inflation rate resulted from housing and households, transport, recreation and culture. At the other end of the spectrum, the largest – partly compensating – the insert down comes from clothing and footwear, ONS said in a press release.
Economists expected growth, assigning it mainly to an increase in the price of energy price-related to the maximum price, which energy suppliers can also collect a number of disposable corrections, including national tax taxes introduced in April, Easter and recently good weather.
The latest data “will be a relatively noisy report at a time when the Bank of England is impatiently trying to come up with what to do next,” said Julien Lafargue, the main market strategist at Bank Barclays Bank in the E -Mail comments on Tuesday.
“However, in addition to short-term distortions, we believe that the general direction of inflation travel in Great Britain is lower. This should provide the bank with a central place to consider at least a few subsequent reductions in interest rates this year, supporting favorable economic conditions,” he added.
The British pound jumped by about 0.4% compared to the American dollar Immediately after the publication of the annual printout of inflation in Great Britain in April.
The British Chancellor Rachel Reeves said on Wednesday that she was “disappointed” with the latest data and that “the pressure on maintenance still burden working people.”
Bank of England expectations
The Bank of England has signaled widely that he expected a temporary increase in inflation up to 3.7% in the third quarter. The increase in price increases, said the Monetary Policy Committee, will cause partly due to increases in energy prices and some regulated prices, such as water bills.
The expected increase in inflation is not enough to stop Boe from lowering its key interest rate to 4.25% at the last meeting at the beginning of May, taking into account the constant uncertainty about a wider economic image.
At that time, Boe insisted that any further interest rate discounts would be “Gradual and cautious” Because it looks like a 2%reduction of inflation rate. The rate of foot discounts may, however, be changed if the American trade tariffs suppress global demand and achieve the growth of Great Britain more than expected.
Last week in Great Britain there was rare news about British data, with preliminary quarterly data of the gross domestic product (GDP) showing an increase of 0.7% in the first quarter.
Economists said that impressive data would not be repeated in the second quarter, noticing that print in the first quarter of the bumper was largely the result of presentation of activities before potential American tariffs and an increase in taxes on national tax taxes in April.