From Morningstar: 2025-04-16 06:54:00

UK inflation rose by less than expected in March 2025, with the Consumer Prices Index up 2.6% in the 12 months to March, below expectations. CPIH, the preferred measure of inflation, also fell to 3.4%. Petrol prices dropped to 137.5p per liter, diesel to 144.8p per liter.

Disinflationary pressure seen in the UK economy’s recreational and culture sector, with overall prices rising by 2.4% in March, down from 3.4% in February. The ONS attributed the slowing in the annual rate to downward effects from various classes, including games, toys, hobbies, and data processing equipment.

Falling inflation and energy costs may pressure central banks to cut rates. The Bank of England’s inflation target is 2%, still far off according to recent data. Interest rates are currently 4.50%, with three cuts since the peak in August 2023. UK inflation figures do not yet reflect recent tax increases.

The Bank of England faces decisions on inflation, tariffs, and economic growth. Uncertainty over US trade tariffs and the impact on inflation and the economy could justify a careful and gradual monetary stance. Global economic slowdown and trade policy uncertainty pose risks to both inflation and growth, requiring the Bank to weigh these factors.

Investors await the next UK inflation figures for April 2025 on May 21. The Bank of England will need to balance upside inflation risks with downside growth risks amid global economic uncertainties. Trade policy uncertainty and potential tariffs on UK exports could impact inflation, while wage growth and labor market conditions also influence the Bank’s rate decisions. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping by 3% and the Dow Jones Industrial Average falling by 600 points. Investors are concerned about rising inflation and the impact it will have on the economy.

2. A new study has found that the COVID-19 vaccine is highly effective in preventing severe illness and hospitalization. The study showed that the vaccine reduced the risk of hospitalization by 90% and the risk of severe illness by 95%.

3. The United Nations has reported that the number of people facing acute hunger worldwide has reached 155 million, the highest level in five years. The COVID-19 pandemic, conflict, and climate change are cited as the main drivers of the crisis.

4. The European Union has announced plans to increase its emissions reduction target to 55% by 2030, up from the previous goal of 40%. The move is part of the EU’s efforts to combat climate change and achieve carbon neutrality by 2050.

5. Tesla has announced a new partnership with a Chinese battery manufacturer to produce lithium iron phosphate batteries for its electric vehicles. The partnership is aimed at increasing production capacity and reducing costs to make Tesla’s vehicles more affordable for consumers.



Read more at Morningstar: Bank of England Under Pressure to Cut Rates as UK…