UK 2025 Inflation Report

[Forum Admin]

UK 2025 Inflation Report

 

 
Last week, in March 2025, the Bank of England held interest rates steady at 4.5%, citing rising global uncertainty and persistent concerns about inflation. Will the upcoming inflation data help markets determine the timing of the next rate cut?

What to expect

In January, UK inflation surged to 3%, its highest level since March 2024, reinforcing concerns about persistent price pressures.

For February, analysts anticipate a 2.9% year-over-year increase, indicating a potential easing of inflation, according to Trading Economics.

In January, annual inflation rose to 3%, surpassing December’s 2.5% and the 2.8% forecast. GBP pairs saw heightened volatility (high/low prices) within 15 minutes of the announcement.

What is the significance to the market?

The Consumer Price Index (CPI) quantifies the fluctuations in the cost of goods and services as perceived by consumers. The Core Consumer Price Index measures fluctuations in the prices of goods and services, excluding those of food and energy. These indices serve as pivotal tools for assessing alterations in consumer spending patterns and gauging inflationary tendencies. The Federal Reserve tracks inflation figures to evaluate the country’s economic health and determine its future monetary policy.