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UK: Annual CPI rises to 10.1% in July, its highest level since 1982

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

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