| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | United Kingdom | HICP, Y/Y | January | 4% | 4.2% | 4% |
| 07:00 | United Kingdom | HICP ex EFAT, Y/Y | January | 5.1% | 5.2% | 5.1% |
| 07:00 | United Kingdom | HICP, m/m | January | 0.4% | -0.3% | -0.6% |
| 10:00 | Eurozone | GDP (YoY) | Quarter IV | 0% | 0.1% | 0.1% |
| 10:00 | Eurozone | GDP (QoQ) | Quarter IV | -0.1% | 0% | 0% |
GBP fell against other major currencies in the European session on Wednesday as data showed that the UK’s annual inflation rate remained unchanged in January, surprising economists, who had forecast its acceleration.
The Office for National Statistics (ONS) reported this morning that both headline and core inflation rates remained stable in January, staying at 4.0% YoY and 5.1% YoY, respectively. Economists had predicted the rates to increase to 4.2% YoY and 5.2% YoY, respectively.
Markers interpreted the January steady inflation as a welcome relief for the Bank of England following yesterday’s labour market report, which showed a hotter-than-anticipated wage growth.
According to Bloomberg, markets now predict the BoE to approve just over 70 basis points of rate cuts in 2024 compared to 61 basis points at yesterday’s close, with the first 25-basis-point decrease coming in August, compared to September previously seen.