• CPI inflation in UK rose at a stronger pace than expected in March.
• GBP/USD edges higher above 1.3020 after UK data. 

The data published by the UK's Office for National Statistics revealed on Wednesday that annual inflation, as measured by the Consumer Price Index (CPI), jumped to 7% in March from 6.2% in February. This print came in higher than the market expectation of 6.7%. On a monthly basis, CPI arrived at 1.1%, compared to analysts' estimate of 0.7%.

The Core CPI, which excludes volatile food and energy prices, rose to 5.7% on a yearly basis from 5.2%. Moreover, the Retail Price Index (RPI) climbed to 9% from 8.2% in the same period and the Producer Price Index (PPI) - Input surged to 19.2%, surpassing the market forecast of 13.4% by a wide margin.

Market reaction

The British pound gathered strength against its rivals with the initial reaction to these figures. The GBP/USD pair was last seen trading in positive territory at 1.3020.