UK annualized CPI meets estimates with +1.7% in Feb, GBP/USD unfazed
- UK CPI rises by 1.7% YoY in February vs. +1.8% expected.
- Monthly UK CPI arrives at +0.4% in February
- GBP/USD keeps the recovery momentum intact above 1.1800
The UK Consumer Prices Index (CPI) 12-month rate came in at +1.7% in February, when compared to +1.8% booked in January while matching expectations of a +1.7% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at +1.7% YoY last month versus +1.6% booked in Jan while above the consensus forecast of +1.5%.
The monthly figures showed that the UK consumer prices arrived at +0.4% in Jan, beating +0.3% expectations and -0.3% last.
Main points (via ONS):
“The largest contribution to the CPIH 12-month inflation rate in February 2020 came from housing, water, electricity, gas and other fuels (0.52 percentage points), which fell by 0.03 percentage points from January.
The contributions to change in the CPIH 12-month inflation rate were relatively small compared with movements in most months.
Falls in the price of motor fuels, and games, toys and hobbies resulted in the largest downward contributions to the change in the CPIH 12-month inflation rate between January and February 2020.
Price rises for recording media, and for restaurant and hotel services produced the largest, partially offsetting, upward contributions to change.”
FX implications:
On in-line with estimate UK CPI numbers, the GBP/USD pair held on to the gains near 1.1830, having hit a daily top at 1.1857 in the last hour.
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.
