Inflation in the UK Fell to 8.7% in April, Lower Than the 8.2% That was Expected by Economists

EnclaveFX Ltd
May 24, 2023

  • Despite expectations that the UK CPI would rise 8.2% YoY in April, the CPI rose 8.7% YoY instead.
  • In April, the UK consumer price index came in at 1.2%, which was slightly higher than the expected 0.8%.
  • In the wake of upbeat CPI figures in the UK, the GBP/USD climbed above 1.2445.

There will be more to come...

What are the reasons why UK inflation is important to traders?

The Bank of England (BOE) is tasked with keeping inflation, as measured by the headline Consumer Price Index (CPI) at around 2%, giving the monthly release its importance. When the BOE reduces the purchase of bonds by the BOE as a result of an increase in inflation, the supply of pounds is likely to be squeezed, thus further increasing interest rates. In contrast, a slowdown in price rises might signal that monetary policy is loosening. When the GBP has an unexpectedly good result, it tends to be bullish for the currency.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell these assets. You should do your own thorough research before making any investment decisions. EnclaveFX Ltd does not in any way guarantee that this information is free of mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in the Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses, and costs associated with investing, including the total loss of principal, are your responsibility.

EnclaveFX Ltd and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. EnclaveFX Ltd and the author will not be liable for any errors, omissions, or any losses, injuries, or damages arising from this information and its display or use. The company is not responsible for errors or omissions.