The Office for National Statistics will release the critical UK CPI report on Wednesday. Headline and Core annual inflation are set to fall in October, finally below the 6.0% level. The BoE’s interest rate outlook and the Pound Sterling’s fate hinges on the UK CPI data. The Pound Sterling market keenly awaits the release of the high-impact United Kingdom’s (UK) Consumer Price Index (CPI) data for October, which will be released by the Office for National Statistics (ONS) on Wednesday.
Back in September, the UK CPI rose at an annual pace of 6.7% in September, at the same pace as seen in August. The data beat market expectations of a 6.5% rise. The Core CPI index (excluding volatile food and energy items) accelerated by 6.1% YoY in the reported month against an increase of 6.2% seen in August, surpassing the 6.0% forecast. Despite the persistently high inflation level, the Bank of England (BoE) held the benchmark interest rate at a 15-year high of 5.25% at its November policy meeting, leaving the door open for another interest rate hik