#oecd-inflation

#oecd-inflation

Markets could remain sensitive to the developments in the Middle East. Tensions remain elevated in the region amid continued incidents in the Strait of Hormuz and a failed attempt for a second round of talks this week, undermining prospects for a near-term resolution.

Public sector net borrowing fell by £19.8 billion, or 13.1pc, to £132 billion over the 12 months to the end of March, the lowest level since 2022-23.

Trump's approval rating on inflation and prices dropped to 35 points underwater, matching the lowest level reached by Joe Biden during his inflation-ravaged presidency.

Canada's annual inflation rate rose to 2.4% in March, driven by high prices for energy, especially gas, due to the war in Iran.

The International Energy Agency (IEA) says it is the 'largest supply disruption in history'. With the disruption expected to have a lasting impact on prices, governments around the world have introduced measures to limit the impact on consumers and the economy.

Britain's tax wedge, which estimates total taxes on labour paid by employees and employers, minus cash benefits received by working households, increased by 2.45 percentage points last year, the most in the OECD.

The UK unemployment rate fell from 5.2% to 4.9%, driven more by increased economic inactivity, particularly as fewer students sought work.

Gold spot prices reached $4,829 per troy ounce at the end of the week, marking a fourth consecutive weekly gain. COMEX futures closed at $4,879, up 1.48%, driven by Iran's Strait of Hormuz truce and U.S. dollar weakness.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain, the central bank said in a statement announcing its policy decision and referring to its Federal Open Market Committee.

The resilience of gold above $4,800 per ounce at this stage reflects a delicate and complex balance between traditional supporting factors and emerging pressures-one that cannot be superficially interpreted or reduced to the movement of the dollar alone. It is true that the U.S. dollar's retreat from its recent peaks, after failing to sustain its recovery momentum from a four-year low, provided gold with a short-term breather and attracted some buyers.