GBP/USD jumps to 1.2075 as UK CPI rises 2.1% y/y in July vs. +1.9% expected
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- UK CPI rises 2.1% y/y in July vs. 1.9% expected.
- UK CPI arrives at 0.0% m/m in July vs. -0.1% expected.
The UK Consumer Prices Index (CPI) 12-month rate came in at 2.1% in July, when compared to 2.0% booked in June while bettering expectations of a 1.9% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at 1.9% y/y last month versus 1.8% booked in June while matching the consensus forecast of 1.8%.
The monthly figures showed that the UK consumer prices arrived at 0.0% in July, beating -0.1% expectations and 0.0% last.
Main Points (via ONS):
“Between June and July 2019, there were large upward contributions to the change in the CPIH 12-month rate from games, toys and hobbies, and accommodation services, where prices for both rose by more than a year ago, and from clothing and footwear, and other financial services.
There were offsetting downward contributions to change coming from transport services and, to a lesser extent, from domestic fuels principally electricity and gas.”
On an upside surprise in the UK CPI numbers, the GBP/USD pair jumped to daily highs of 1.2073 in a knee-jerk reaction before reversing quickly to near 1.2065 region.
GBP/USD Technical levels to watch
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