UK inflation exceeded forecasts in April, driven by utility bills and travel. Learn how this impacts BoE policies, markets, and your investments.

Headline, core and services price measures all came in well above expectations, but will not necessarily derail further cuts

Annualized inflation eased to a 2.3 percent pace, the lowest since early 2021. But the month-to-month pace of inflation increased.

U.S. CPI readings for April were a touch lighter than forecasted, with U.S. headline CPI up +0.2% month-over-month (MoM) and up +2.3% year-over-year (YoY).

The Federal Reserve will have little reason to change its wait-and-see stance as a result of April's inflation reading from the consumer-price index. The figures were largely in line with the expectations of forecasters who closely track how the Labor Department measures inflation.

Inflation in the U.K. spiked to its highest level for more than a year in April amid higher domestic bills such as energy and water.

The headline rate of UK inflation jumped by more than expected to 3.5% in April, this morning's ONS report shows

The dip in the U.S. credit rating indicates that ratings agencies believe the government is at a higher risk of default on its debt. While the U.S. rating still remains relatively high, the decrease may make investors more hesitant to lend to the government, and demand higher compensation for lending in the form of higher interest rates.