UK Annualized CPI Misses Estimates With 0.7% In March, GBP/USD Unfazed Above 1.39

The UK Consumer Prices Index (CPI) 12-month rate came in at +0.7% in March when compared to +0.4% booked in February while missing expectations of a +0.8% print, the UK Office for National Statistics (ONS) reported on Wednesday. 

Meanwhile, the core inflation gauge (excluding volatile food and energy items) rose to 1.1% YoY last month versus +0.9% registered in February, matching the consensus forecast of +1.1%.

Photo by Colin Watts on Unsplash 

The monthly figures showed that the UK consumer prices arrived at +0.3% in March vs. +0.3% expectations and +0.1% prior.

Main points (via ONS):

The largest upward contribution to the CPIH 12-month inflation rate came from transport.

Rising prices for motor fuels and clothing led to the largest upward contributions to the change in the CPIH 12-month inflation rate between February and March 2021.

FX implications:

In reaction to mixed UK CPI numbers, the GBP/USD pair remains pressured below 1.3950, as the pound remains unfazed.

The spot was last seen trading at 1.3934, modestly flat on the day.

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