GBP/USD battles 1.3800 after UK CPI misses estimates with 3.1% YoY in September
- UK CPI rises by 3.1% YoY in September vs. +3.2% expected.
- Monthly UK CPI arrives at 0.3% in September vs. +0.4% expected.
- GBP/USD holds steady around 1.3800 on downbeat UK CPIs.
The UK Consumer Prices Index (CPI) 12-month rate came in at +3.1% in September when compared to +3.2% recorded in August while missing expectations of a +3.2% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) fell to 2.9% YoY last month versus 3.1% registered in August, falling short of the consensus forecast of 3.0%.
The monthly figures showed that the UK consumer prices arrived at 0.3% in September vs. 0.4% expectations and 0.7% prior.
Main points (via ONS):
The largest upward contribution to the September 2021 CPIH 12-month inflation rate came from transport (0.91 percentage points).
Restaurants and hotels made the largest downward contribution to the change in the CPIH.
FX implications:
In an initial reaction to the downbeat UK CPI numbers, the GBP/USD pair eased a few pips below 1.3800.
The spot was last seen trading at 1.3802, up 0.05% on the day.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
