- UK CPI rose 6.7% year-on-year in August, versus 7.1% expected.
- British monthly inflation rises to 0.3% in August versus 0.7% expected.
- GBP/USD refreshes multi-month lows below 1.2350 following weak UK CPI inflation data.
Official data published by the Office for National Statistics (ONS) showed on Wednesday that the UK annual Consumer Price Index (CPI) rose 6.7% in August, cooling from July’s 6.8% rise. The market consensus pointed to an increase of 7.1%.
Core CPI (which excludes food and energy volatility) rose 6.2% year-on-year in the reported month, compared to an acceleration of 6.9% in July, and below estimates of 6.8%.
On a monthly basis, the CPI rose 0.3% month-on-month in Augustcompared to estimates of 0.7% and the 0.4% decline recorded in July.
On the other hand, the UK Retail Price Index up 0.6% MoM and 9.1% YoY in August, both below expectations.
GBP/USD reaction
In a knee-jerk reaction to UK CPI inflation data, the GBP/USD pair plummeted almost 40 pips and hit new multi-month lows below 1.2350. At the time of writing, the pair is down 0.35% on the day and is trading at 1.2345.
GBP/USD 15 minute chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
