After falling for a couple of trading sessions, GBPUSD is consolidating.
After updating its local highs, the British Pound stopped falling against the USD; right now, the pair is consolidating. The current quote for the instrument is 1.3894.
The statistics publish by the United Kingdom yesterday showed that the Consumer Price Index added 0.7% y/y in March after expanding by 0.4% y/y the month before and against the expected reading of 0.8% y/y. The Core CPI showed 1.1% y/y after being 0.9% y/y in the previous months, the same as expected.
The PPI Input showed 1.3% /m in March after being 0.9% m/m in February. The PPI Output was 0.5% m/m after being 0.7% m/m the month before and against marker expectations of 0.3% m/m.
So, since global prices for energies rose while discounts for clothes and footwear were canceled due to low demand for seasonal goods, prices in the United Kingdom finally went up. And they will continue rising when it becomes clear that the country emerges from the lockdown and is ready t get back to normal life after the coronavirus pandemic.
In the coming months, the Consumer Price Index in the United Kingdom is officially expected to increase along with electricity bills. Another factor to support inflation is a surge in prices for fuel: in March, this aspect showed the highest growth rate since the beginning of the year and the positive momentum here continues so far.
It is quite reasonable to expect that by the end of 2021 the British inflation may reach 2%.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.