UK CPI inflation ticks up to 3.8% YoY in July vs. 3.7% expected
The United Kingdom (UK) headline Consumer Price Index (CPI) rose at an annual rate of 3.8% in July after having increased by 3.6% in June, the data released by the Office for National Statistics (ONS) showed on Wednesday.
The market consensus was for a 3.7% growth in the reported period. The reading moves further away from the Bank of England’s (BoE) 2% inflation target.
The core CPI (excluding volatile food and energy items) rose 3.8% year-over-year (YoY) in the same period, compared to a 3.7% advance in June, while beating the expected 3.7% print.
Services inflation rose to 5% YoY in July vs. 4.7% in June.
Meanwhile, the monthly UK CPI inflation fell to 0.1% in July from 0.3% in June. The data beat the forecast of -0.1%.
GBP/USD reaction to the UK CPI inflation data
The UK CPI data lifted the Pound Sterling rebound, with GBP/USD up 0.04% higher on the day at 1.3496, as of writing.
Source: Fxstreet
