UK Finance Minister Rishi Sunak attributes the 9% jump in the Kingdom’s annualized inflation rate to the energy price cap rise in April.
“Today’s inflation numbers are driven by energy price cap rise in April, in turn driven by higher global energy prices. We cannot protect people completely from global challenges but are providing significant support where we can and stand ready to take further action,” Sunak said.
Despite the below-forecast inflation reading, the gauge hit a record high, worsening the cost-of-living crisis for UK households.
Also read: BOE to ramp up rate hikes amid the UK’s worst cost-of-living crisis – Reuters poll
Market reaction
GBP/USD is falling sharply towards 1.2400 following the data release. The spot was last seen trading at 1.2448, down 0.32% on the day.
