• Prior +4.0%
  • Core CPI +5.1% vs +5.2% y/y expected
  • Prior +5.1%

The figures are slightly lower than estimated but they are similar to the December readings. With core inflation still holding above 5%, I don't think this changes much of the current outlook for the BOE. The pound is dragged lower regardless with cable dropping from 1.2600 to 1.2570 currently.

The odds of a June rate cut were around ~40% coming into the data release. I would expect that to increase a little but not reflective of the aggressive pricing that we saw before the BOE meeting earlier this month.

Going back to the report, services inflation remains sticky at 6.5% (compared to 6.4% in December) and that won't be a comforting factor for the BOE.