The latest UK inflation figures have surprised markets, coming in lower than expected and offering relief amid ongoing economic pressures. Here’s what you need to know.
UK Inflation Falls to 3.4%
This morning’s data revealed that UK inflation fell to 3.4%, below the forecasted 3.8%, surprising economists with a 0.4% drop. This unexpected easing of inflation:
- Alleviates some of the pressure on Chancellor Rachel Reeves, as she navigates a challenging economic landscape and a bond market sell-off.
- Has already triggered a jump in the pound, with gains against both the euro and the dollar following the release.
Upcoming Key Data Releases
Today’s focus now shifts to:
- German Growth Figures: Expected later this morning, providing insights into the health of Europe’s largest economy.
- EU Industrial Production: Also due this morning, potentially influencing euro performance.
- US CPI Data: This afternoon, the US inflation figures will be closely monitored, particularly after a series of strong economic results in recent weeks.
How Could This Impact Your Business?
The pound’s upward movement presents an opportunity for businesses dealing in GBP/EUR or GBP/USD transactions to secure favourable rates. Meanwhile, forthcoming data from the US and EU could create additional market volatility. Staying informed is key to managing currency risks and maximising opportunities.
Contact Qumoney’s experts today for tailored strategies to protect your business and capitalise on market shifts.