UK March CPI +3.2% vs +3.1% y/y expected

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• Prior +3.4%
• Core CPI +4.2% vs +4.1% y/y expected
• Prior +4.5%

The pound has nudged higher on the numbers here, as price pressures are holding slightly stronger than estimated. Compared to February, the annual readings still reflect a drop but with core inflation still above 4%, the BOE doesn’t have much room for comfort at the moment.

GBP/USD is up from 1.2420 to 1.2440 but I don’t see this as being a major game changer for the pound. I reckon bets for an August rate cut should be maintained for the most part.