South Africa's rand was unchanged on Wednesday after local inflation fell slightly more than expected in March, but not enough to change the outlook on interest rates. At 1516 GMT, the rand traded at 19.
Inflation has fallen to its lowest level in two-and-a-half years, driven largely by slowing food price rises. Prices rose by 3.2% in the year to March, down from 3.4% the month before, according to official figures.
Bank of England policy maker Megan Greene said developed economies including the UK face a “bumpy ride” as central banks squeeze out the final effects of the global inflation shock, and interest rates may have to stay higher than some expect.
Britain's inflation rate slowed by less than expected in March, according to official figures published on Wednesday, adding to signs that a first interest rate cut by the Bank of England could be further off than previously thought.
Inflation was 3.2 percent over the year through March, down from 3.4 percent in February but a touch higher than the 3.1 percent economists expected, a sign that the path to cooler inflation could be bumpy.
Japan's core inflation slowed in March and an index gauging broader price trends fell below 3% for the first time in over a year, data showed on Friday, as analysts say yen weakness could complicate the central bank's policy deliberations.
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British inflation is broadly declining in line with the Bank of England's forecasts, and next month's numbers look on track for a sharp drop towards the central bank's 2% target, Governor Andrew Bailey said on Wednesday.
European Central Bank Executive Board member Luis de Guindos reiterated that a continuation in the downward trend in inflation should allow interest rates to be lowered — backing expectations for a cut in June.
Inflation fell more slowly than expected last month due in part to higher fuel prices, increasing the chances that the Bank of England will delay cutting interest rates until much later this year.
The pound firmed on Thursday, taking advantage of a rare bit of dollar weakness and the pushing back of expectations of Bank of England rate cuts to drag itself further from Tuesday's five-month low on the greenback.
However, Wednesday’s figure also marked the lowest UK inflation rate since 2021. Driven by a fall in food prices, it was also lower than the rate of price growth in the US for the first time since March 2022 Core inflation,