Markets await UK inflation data showing a slight easing in June, potentially influencing Bank of England policy decisions later this month.
The UK’s June Consumer Price Index is expected to show annual inflation at 2.7%, down from May’s reading, signaling a continued decline in price pressures. Core inflation, excluding food and energy, is forecast at 2.5%, a slight drop from the previous month’s 2.6%. Monthly inflation is projected to rise 0.1%, following a 0.2% increase in May.
The Bank of England held rates steady at 3.75% in June but maintained a cautious stance, with a 7-2 vote split hinting at potential future hikes. Governor Andrew Bailey recently emphasized patience, aligning with market expectations for a steady approach at the July 30 meeting.
GBP/USD has struggled to breach May highs, reflecting investor caution ahead of the data. The report’s outcome could sway BoE policy bets and sterling’s near-term trajectory.