UK inflation hits 3.2% in August, above 2.9% expected, GBP/USD rises
|The UK Consumer Price Index has risen by 3.2% YoY in August, above 2.9% expected. On a monthly basis, CPI is up 0.7% vs. 0.5% that was predicted. Core CPI rose by 3.1% yearly, also above 2.9% projected. Other measures also exceeded estimates.
GBP/USD has hit a daily high of 1.3824 in the immediate aftermath. Cable traded near 1.38 earlier in the day. Higher inflation raises the chances that the Bank of England raises rates earlier than previously anticipated.
The economic calendar pointed to an annual increase of 2.9% in headline CPI in August after 2% in July. Core CPI was also projected to result in a similar leap – from 1.9% to 2.9%.
Bank of England Governor Andrew Bailey recently said that the Monetary Policy Committee was split 4:4 on if conditions have been met to raise interest rates. On Tuesday, the UK report
GBP/USD traded just above 1.38 ahead of the publication down from higher levels recorded on Tuesday in response to weaker-than-estiamted US inflation figures.
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.