The British pound went up on Wednesday morning after new information showed that UK inflation in April 2025 was higher than people thought it would be. The inflation rate for April was 3.5%, which surprised many experts.
Right after the numbers came out at 7:00 a.m. in London, the pound jumped by about 0.4% compared to the U.S. dollar. A few minutes later, at 7:06 a.m., the pound was up 0.3% and was trading at about $1.343. This shows that traders were reacting quickly to the new inflation data.
The Office for National Statistics said prices went up by 3.5% in April compared to the same time last year. Many experts had guessed it would be 3.3%. This increase shows that prices are rising faster again after a short time of slower price increases.
UK Inflation April 2025: Prices Rise Faster Than Expected
For the last few months, price increases were slowing down. In February, inflation was 2.8%, and in March, it dropped to 2.6%. Many thought prices would continue rising more slowly in April. But the new report shows the opposite.
Core inflation—which does not count things like energy, food, alcohol, and tobacco—also went up. It reached 3.8% in April, compared to 3.4% in March. This part of the inflation number is important because it shows more steady changes in prices.
The rise in UK inflation April 2025 could mean the Bank of England will think more carefully before lowering interest rates. Higher inflation might also make life more expensive for people, and it can change how businesses and families spend money.
UK Inflation April 2025: European Markets Stay Calm After Report
Stock markets in Europe started the day mostly flat, meaning they didn’t go up or down very much. London’s FTSE index was expected to open 5 points higher at 8,781. Germany’s DAX index was up by just 1 point at 24,012. France’s CAC 40 dropped 5 points to 7,933. Italy’s FTSE MIB went down by 27 points to 40,548.
Even with the surprising UK inflation April 2025 numbers, markets stayed steady. Investors are also watching company earnings reports. Some big companies in the UK, like Marks & Spencer, Currys, JD Sports, and SSE, are sharing their financial results soon.
UK Inflation April 2025: Asia and U.S. Markets React Differently
In Asia, most stock markets went up overnight. South Korea’s Kospi index rose 0.58%, and the smaller Kosdaq index went up 0.95%. Australia’s stock market grew by 0.43%. Hong Kong’s Hang Seng started the day 0.45% higher. China’s CSI 300 stayed about the same.
Japan’s Nikkei 225 index went down by 0.23% because Japan’s exports were lower for the second month in a row.
In the United States, markets were mixed. Futures for the S&P 500 and Nasdaq dropped by 0.1%, and the Dow Jones futures went down by 59 points. This happened after the stock market had a losing day on Tuesday, ending a good run from earlier in the week.
What UK Inflation April 2025 Means for Everyone
The UK inflation April 2025 report is important news. Since prices are going up faster than expected, it may change what the Bank of England decides to do next. It also affects people’s everyday spending, how businesses plan for the future, and how investors make decisions.
Traders, companies, and families across the UK and around the world will be watching closely to see what happens next with inflation, interest rates, and the economy.
