There was a big surprise in the UK last week. On May 22, the Office of National Statistics (ONS) reported that UK core consumer price inflation (excluding energy, food, alcohol and tobacco) rose by 3.9% in April.
That is down from 4.2% in March. But the consensus expectation had been that the rate of price rises would come in sharply lower, at closer to 3.6%.
Stickier core inflation makes early rates cuts less likely. Yields on 10-year gilts rose 11 basis points on the news.
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