UK CPI hotter than expected


UK May inflation data came in hotter than expected, with the headline CPI figure rising to 2.9% y/y, the highest rate since June 2013 and up from 2.7% y/y in April. The Bloomberg median forecast had been for a slight dip to 2.6% y/y. The core CPI reading rose to 2.6% y/y from 2.4% in the prior month. Despite perky consumer prices, which were driven by price rises in a broad range of component categories, PPI input prices ebbed to 11.6% y/y from 15.6% while output prices came in unchanged at 3.6% y/y. The pound saw some chop in the wake of the release, but the net impact has been limited. This data still fits the BoE view, and the central bank has clearly signaled that it is looking through the current phase of above-target inflation, anticipating a return to 2.0% target next year. The latest average household income data, out tomorrow, will now be scrutinized, although sterling markets are rather more preoccupied with UK politics than UK data presently (how the fledgling minority government will fare, whether the prime minister can survive, and what all this means for the Brexit process).

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Andria Pichidi

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.