British Inflation Decline
Data on inflation published by the British Statistics Office on Wednesday showed that the inflation rate came in below expectations and negative during the past March in the United Kingdom. The consumer price index in the country slowed at a pace higher than market expectations, recording its lowest level since September 2021.
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British Inflation
According to the data, the overall inflation rate in the United Kingdom was 3.2% in March on an annual basis, which is higher than the market expectations that predicted a slowdown to 3.1%. It is noted that the overall inflation rate had slowed down to 3.4% in the previous February.
As for the core inflation rate (which excludes food and energy prices), it also saw a slowdown in March in the United Kingdom, reaching about 4.2% on an annual basis, which is higher than market expectations that indicated it would record 4.1%. It is noted that core inflation had slowed down to 4.5% in February.
Gold:
Gold Prices Stability:
It prices consolidated on Wednesday after reaching record levels the previous week, partially affected by the impact of the high dollar and the yields of U.S. Treasury bonds, while the demand for safe havens resulting from geopolitical risks in the Middle East was compensated.
Spot gold prices remained stable at $2381.68 per ounce, after recording an all-time high of $2431.29 on the previous Friday. U.S. gold futures fell 0.4 percent to $2397.70.
The dollar stabilized near its highest level in five months, and the yields of the standard U.S. 10-year Treasury bonds rose to 4.6591 percent, moving near the highest level recorded in the previous session.
Oil:
Decline in Oil Prices During Yesterday’s Trading:
Oil prices fell in early trading on Wednesday, with growing concerns about global demand due to weak economic growth in China and declining expectations for a cut in U.S. interest rates in the near future, overshadowing concerns related to supply amid escalating tensions in the Middle East.
Brent crude contracts for June delivery dropped by seven cents, or 0.1 percent, to $89.16 per barrel, while U.S. crude contracts for May delivery fell by ten cents, or 0.1 percent, to $85.26 per barrel.
Oil prices have dropped since the beginning of the week with the impact of unfavorable economic conditions on investor confidence, leading to a reduction in the gains made due to geopolitical tensions and the anticipation of Israel’s reaction to the attack launched by Iran earlier this week.
Concerns about demand increased due to expectations of delaying a cut in U.S. interest rates, as well as weaker than expected economic data from China.
British Inflation Decline