In the Asian session on Monday (May 29), GBP/USD fell back from its highs, temporarily reporting at 1.2335, a drop of 0.06%. Month-on-month gains in overall retail goods prices have slowed, although April CPI data showed headline inflation remained very high, especially in the food and services sectors.
Bank of England dynamics
However, pressure on the cost of living remains high and, given the Bank of England’s expected rate hikes, the pain will continue for British households saddled with loans. Hare added: “The road ahead for British consumers remains bumpy.” According to data, the country’s consumer price index (CPI) rose 8.7% year-on-year in April, down from 10.1% in the previous value, and joined Italy as a G7 middle-level consumer. Countries with the highest inflation rates. Inflation in the UK fell sharply in April, but remained higher than consensus expectations and was higher than expected for the third month. This means that the possibility of the Bank of England raising interest rates in June has further increased, which will give support to the pound. The Bank of England’s next interest rate decision will be held on June 22.
