Breaking: UK annualized CPI jumps to 5.1% in November vs. 4.7% expected
|
- UK CPI rises by 5.1% YoY in November vs. +4.7% expected.
- Monthly UK CPI arrives at +0.7% in November vs. +0.4% expected.
- GBP/USD pops and drops on upbeat UK CPIs.
The UK Consumer Prices Index (CPI) 12-month rate came in at 5.1% in November when compared to +4.2% registered in October while beating expectations of a +4.7% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) rose by 4.0% YoY last month versus +3.4% booked in October, outpacing the consensus forecast of +3.7%.
The monthly figures showed that the UK consumer prices arrived at +0.7% in November vs. +0.4% expectations and +1.1% prior.
Main points (via ONS):
The largest upward contributions to the November 2021 CPIH 12-month inflation rate came from transport (1.34 percentage points, principally from motor fuels and second-hand cars) and housing and household services (1.28 percentage points).
On a monthly basis, CPIH increased by 0.6% in November 2021, compared with a fall of 0.1% in November 2020.
The upward contributions to the change in the CPIH 12-month inflation rate between October and November 2021 were broad-based, with the largest coming from transport (particularly motor fuels), and clothing and footwear.
These were partially offset by a large downward contribution from restaurants and hotels.
FX implications:
In an initial reaction to the upbeat UK CPI numbers, the GBP/USD pair spiked to daily highs of 1.3264 before reversing quickly to 1.3249, where it now wavers. The spot is up 0.08% on the day. The focus now remains on the Fed decision.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.