"Given the long-term labor and investment issues posed by Brexit, I think it is much more likely that U.K. inflation will surprise Euro Area inflation to the upside looking ahead," Wieladek adds. "The low-single-digit upgrades implied by guidance today should lead to some relief," Jefferies analysts say. (michael.susin@wsj.com)---UK Inflation Data Offer Sterling Temporary Support1154 GMT - The market raises its interest rate expectations for the Bank of England following Wednesday's higher-than-forecast U.K. inflation data but this only offers temporary support to sterling, Societe Generale says. "Rates will rise further in the U.K., and growth will have to slow more to get inflation back under control." "April's transfer was higher than we would have expected," the analysts say.

Source: Wall Street Journal May 24, 2023 14:54 UTC