UK prices are rising faster than official figures suggest – FT
|According to a study conducted by Britain’s economic consultancy firm National Institute of Economic and Social Research (NIESR), the Kingdom’s Consumer Price Index (CPI) is understated by the Office for National Statistics (ONS), as cited by the Financial Times (FT).
Key takeaways
“That the Office for National Statistics is understating the speed prices are rising.”
“The researchers say the rate of CPI is 0.4% than official figures.”
“The ONS is putting too much weight on goods and services that were unavailable because of Covid-19, dragging the inflation rate down.”
“Instead of changing the basket of goods to reflect what people were actually spending, the ONS had put in prices of goods and services that were missing so as not to change the overall rate of inflation.”
Market reaction
GBP/USD is off the monthly lows and looks to regain 1.2400 in anticipation ahead of the key EU-UK post-Brexit trade negotiations. The spot rises 0.27% to trade at 1.2366 while markets digest the latest comments from the UK PM Boris Johnson leaving the EU with an Australian style trade deal.
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.