The decline in annual inflation may affect household budgets, interest-rate expectations and broader financial markets, according to the report.
The report says the United Kingdom’s annual inflation rate slowed to 2.8% in the year to April. Inflation data is closely watched because it influences consumer purchasing power, central bank policy expectations and market sentiment across risk assets, including cryptocurrencies. A lower inflation reading can shape expectations for future borrowing costs and liquidity conditions, which are important for digital asset investors tracking macroeconomic trends.