The U.K. economy has continued along its disinflation path in early 2024, but at a more gradual pace than previously, as this week's wages and price data both surprised to the upside. At the same time, there are nascent signs of U.K. economic recovery. Sentiment surveys have been on an overall improving trend for the past several months, while January and February GDP outcomes point to a return to positive growth after the U.K. economy contracted during the second half of 2023.