- UK CPI rises by 2.5% YoY in June vs. +2.2% expected.
- Monthly UK CPI arrives at +0.5% in June vs. +0.2% expected.
- GBP/USD rises by a few pips towards 1.3850 on upbeat UK CPIs.
The UK Consumer Prices Index (CPI) 12-month rate came in at +2.5% in June when compared to +2.1% recorded in May while beating expectations of a +2.2% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) rose sharply by 2.3% YoY last month versus +2.0% registered in May, outpacing the consensus forecast of +2.0%.
The monthly figures showed that the UK consumer prices arrived at +0.5% in June vs. +0.2% expectations and +0.6% prior.
Main points (via ONS):
“The largest upward contribution to the CPIH 12-month inflation rate came from transport (0.80 percentage points).”
“Prices for food, second-hand cars, clothing and footwear, eating and drinking out, and motor fuel rose in 2021 but mostly fell in 2020, resulting in the largest upward contributions to the change in the CPIH 12-month inflation rate between May and June 2021.”
“These were partially offset by a large downward contribution from games, toys and hobbies, where prices fell this year but rose a year ago.”
In an initial reaction to the upbeat UK CPI numbers, the GBP/USD pair popped a few pips towards the 1.3850 level.
The spot was last seen trading at 1.3841, higher by 0.24% on the day.
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