- 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.
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