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.
GBP/USD Reaction
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
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
