- UK CPI rises 0.2% YoY in Aug vs. 0% expected.
- Monthly UK CPI arrives at -0.4% in Aug vs. -0.6% expected.
- GBP/USD remains capped below 1.2900 on the data release.
The UK Consumer Prices Index (CPI) 12-month rate came in at +0.2% in August when compared to +1.0% booked in July while beating expectations of a 0% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at +0.9% YoY last month versus +1.8% booked in July while beating the consensus forecast of +0.6%.
The monthly figures showed that the UK consumer prices arrived at -0.4% in Aug vs. -0.6% expectations and +0.4% last.
Main points (via ONS):
“The largest contribution to the CPIH 12-month inflation rate in August 2020 came from recreation and culture (0.35 percentage points).
Falling prices in restaurants and cafes, arising from the Eat Out to Help Out Scheme, resulted in the largest downward contribution (0.44 percentage points) to the change in the CPIH 12-month inflation rate between July and August 2020.
Other smaller downward contributions came from falling air fares and clothing prices rising by less between July and August 2020 than between the same two months a year ago.
The largest, partially offsetting, upward contributions came from games, toys and hobbies, accommodation services, road transport services and second-hand cars.”
Following the upbeat UK CPI numbers, the GBP/USD ticked a few pips higher but remained below the 1.2900, having faced rejection at 1.2915.
The spot was last seen trading at 1.2890, modestly flat on the day.
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.