Alex Bobrov
The Office for National Statistics reports that the U.K consumer prices grew in March 2016 at a rate exceeding even the braves expectations. Still, the Bank of England expects a prolonged period of low inflation.
The year-over-year consumer price growth in March 2016 reached 0,5%, the ONS reports. The pace of growth accelerated against February’s 0.3% y/y. The actual figures also exceeded the forecast of 0.4%. It should be noted that this was the highest monthly inflation growth since December 2014, Masterforex-V Academy reports. The latest growth followed a period of inflation decline when the inflation rate actually turned negative in late 2015.
The report says that the inflation growth was backed by higher sales of air tickets in advance of the Easter. To be more specific, the ticket cost increased by as much as 23% over the period of February through March 2016. Footwear and clothes prices also backed the inflation growth, which was slightly smoothed by lower prices on food and gasoline.
As you probably know, the Bank of England has always been very sensitive about the rate of inflation in the U.K. The bankers expect the rate of inflation to stay under 1% in the coming months. At the same time, they expect the inflation rate to high the 2% target no sooner than 2018.
FOREX
Masterforex-V Academy reports that the British Pound is still going down against the U.S. Dollar within the scope of a long-term downtrend. For now, GBPUSD has completed wave A/B of level H4.
On breaking below the 1.4008 low, the currency pair is going to start another bearish move represented by wave A/B of level Daily2. The closest major levels of support are 1.3914 an 1.3835 The closest major levels of resistance are 1.4458, 1.4514. On breaking above the 1.4348 high, the currency pair is going to start another bullish move represented by wave A/B of level Daily.
Alex Bobrov
