Latest UK CPI at 2.8% Compared to 3% Forecast; GBPUSD Slumps

The UK has released its inflation data (Consumer Price Index/CPI), which significantly influenced the movement of GBPUSD during trading on Wednesday (March 26, 2025).

In February, the CPI was reported to have risen by 2.8% year-on-year (YoY), which is below the forecast of 3% provided by Trading Central.

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Additionally, the core inflation rate (core CPI), which excludes food and energy sectors from its calculations, was reported to increase by 3.5% YoY. This figure aligns with the forecast but is lower than January’s 3.7% YoY rate.

Following the announcement, GBPUSD plummeted to 1.29170, marking its lowest point of the day.

This decrease in inflation opens up more room for the Bank of England (BoE) to consider lowering interest rates, leading to negative sentiment for GBPUSD, further impacted by profit taking as it was trading close to a four-month high.