UK annualized CPI beats estimates with 1.5% in April, GBP/USD battles 1.4200
|- UK CPI rises by 1.5% YoY in April vs. +1.4% expected.
- Monthly UK CPI arrives at +0.6% in April vs. +0.6% expected.
- GBP/USD remains unfazed around 1.4200 on upbeat UK CPIs.
The UK Consumer Prices Index (CPI) 12-month rate came in at +1.5% in April when compared to +0.7% booked in March while beating expectations of a +1.4% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) rose by 1.3% YoY last month versus +1.1% registered in March, matching the consensus forecast of +1.3%.
The monthly figures showed that the UK consumer prices arrived at +0.6% in April vs. +0.6% expectations and +0.3% prior.
Main points (via ONS):
The largest upward contributions to the CPIH 12-month inflation rate came from housing and household services (0.57 percentage points), and transport (0.56 percentage points).
Rising household utility, clothing, and motor fuel prices made the largest upward contributions to CPIH growth in April 2021; these were partially offset by a large downward contribution from recreation and culture.
FX implications:
In an initial reaction to the upbeat UK CPI numbers, the GBP/USD pair moved little while keeping its range close to the 1.4200 level.
The spot was last seen trading at 1.4191, marginally higher on the day.
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