Consumer prices for April dropped less than what the Bank of England had projected, raising prospects for more rate hikes.

The GBP/USD seesawed early on Wednesday after the UK reported the nation’s inflation pace dropped but did not meet the Bank of England’s expectations. Consumer prices for April fell to 8.7% on an annualized basis, while the UK’s central bank was looking for an 8.4% drop.

The British pound fluctuated rather aggressively following the report. More precisely, the GBP/USD hit a session high of $1.2470, up from an opening of $1.2410. Bears stepped in shortly after and pressured the pair to its opening levels for the day.

While the general trend is on a downward trajectory – the drop followed a 10.1% in March – the Bank of England is now caught between a rock and a hard place. Analysts say it will likely need to keep raising rates for the foreseeable future in order to stamp out stubborn inflation, especially in food and energy prices.