Comment from Phoebus on the 3.2% inflation rate
17 April 2024
The Office of National Statistics (ONS) this morning released their monthly inflation figures.
Adam Oldfield, chief revenue officer at Phoebus Software, said: “At 3.4% February inflation was the lowest it had been since 2021, and 0.2% lower than the 3.6% than economists had forecast. Today’s figure of 3.2% for March is another drop in the right direction.
“Unfortunately, though, with inflation high on both sides of The Atlantic, and swap rates behaving unpredictably, 3.2% is still not anywhere near where it needs to be to inspire a Bank of England cut in interest rates come 9th May.
“The rise in inflation in the US at 3.48% compared to 3.15% last month, has given the IMF and central banks cause for pause. I agree with Mary Daly, president of the San Francisco Federal Reserve Bank and one of the US central bankers who set monetary policy, who said last week, “The worst thing to do is act urgently when urgency is not required.””
