The Consumer Price Index (CPI) of the United Kingdom moderated two tenths in the year-on-year reading for August, standing at the 9.9% compared to 10.1% in July and 10.2% estimated by the market. It should be remembered that the figure for July was the highest recorded since National Statistic began the series in January 1997.
The monthly inflation was 0.5%, one tenth below the previous 0.6% and forecast for today. This is its lowest percentage in seven months, specifically since January.
The drop in fuel prices was the largest contribution to the drop in annual inflation rates between July and August 2022. The increase in food prices made the largest contribution to the rise.
The year-on-year core CPI, which excludes energy and fresh food, rose to 6.3% from 6.2% previously, matching market expectations, and hitting record levels in decades.
GBP/USD Reaction
The GBP/USD it has reacted lower to the inflation data, dropping just over 20 pips to the 1.1490 area. Earlier in the Asian open, the pair hit a six-day low at 1.1482. At time of writing, the pair is trading above 1.1493, looking flat on the day.
Source: Fx Street
