The UK Consumer Price Index (CPI) rose 10.1% in July annual reading, exceeding the 9.8% expected and the 9.4% in June, according to the National Statistics Office (ONS). This is the highest rate of inflation seen in 40 years, specifically since 1982.
The monthly inflation grew by 0.6%two tenths above the estimated 0.4%, but below the 0.8% of the previous month.
The core CPI year-on-year increased at a pace of 6.2%, the highest in decades, beating June’s 5.8% and the market consensus’s 5.9%.
The increase in food prices was the main contributor to the change in annual CPI inflation rates between June and July 2022.
The pound reacted to the data with an initial rise against the dollar that led to the GBP/USD to two-day highs at 1.2143. Subsequently, the pair fell back down 45 pips to slightly below 1.2100. At time of writing, the pound is trading above 1.2101, gaining 0.06% on the day.
Source: Fx Street
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