Sterling bounces as UK inflation data heats up

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, March 22 (Reuters) - Sterling jumped on Wednesday after data showed UK price pressures picked up a lot more than expected in February, including inflation that excludes food and energy, raising the chances of another rate rise this week from the Bank of England. British consumer price inflation unexpectedly rose to 10.4% in February from January's 10.1%, figures from the Office for National Statistics showed on Wednesday. Economists polled by Reuters had forecast that the annual CPI rate would drop to 9.9% in January. The pound rose by as much as 0.4% against the dollar to $1.2270, from a 0.1% gain prior to the data. The euro fell 0.4% against the pound to 87.73 pence, from 88.00 pence earlier. Money markets show a 61.6% chance that the BoE will raise rates by a quarter point when it meets on Thursday, up from around 57% on Tuesday. (Reporting by Amanda Cooper; Editing by Joice Alves)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.