Mitsubishi UFJ Financial Group: If UK inflation data exceeds expectations, the pound may temporarily rise.

Mitsubishi UFJ analyst Derek Halpenny said in a report that if the inflation data released by the UK on Wednesday exceeds expectations, the pound may briefly rise. According to a survey of analysts, it is expected that the year-on-year inflation rate in April will accelerate from 2.6% in March to 3.3%. In April of this year, with the increase in other taxes, the increase in employer national insurance contributions will also take effect. Energy prices and other utility costs have also risen. Halpenny said that if inflation meets general expectations, people may breathe a sigh of relief. Higher-than-expected inflation could boost the pound, but negative growth could mean that this impact could quickly fade away.