UK Consumer Price Index - Economic Data Preview

The UK [B]Consumer Price Index[/B] is expected to see the annual pace of inflation slowed to 2.4% in April, the lowest since January 2008. Last week, the Bank of England’s quarterly inflation report revealed that policymakers expect inflation to remain below the target 2% until 2012 as the economy takes a slow path to recovery from the current downturn. The British Pound dropped sharply on the announcement, suggesting the fallout in price growth may already be priced into the exchange rate. That said, the Pound did see buying interest in as stock markets rebounded in New York hours to gain 1.1% against the US Dollar and tonight’s release could serve to undermine the longevity of the upswing by shifting focus from risk trends back to economic fundamentals.