UK annualized CPI misses estimates with 0.7% in March, GBP/USD unfazed above 1.39

UK CPI rises by 0.7% YoY in Mar vs. +0.8% expected.
Monthly UK CPI arrives at +0.3% in Mar vs. +0.3% expected.
GBP/USD remains unfazed by the downbeat data, stays above 1.3900.

Dhwani Mehta FXStreet

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%.

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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