High impact
UK CPI year-on-year came in at 3.5% actual, above the 3.4% forecast and up from 3.1% previous.
FinancialJuice10/21, 01:01 PM
Key points
- UK CPI rose to 3.5% year-on-year, above the 3.4% forecast and up from 3.1% previously.
Why it matters
The hotter-than-forecast reading and acceleration in price growth support the case for further interest-rate hikes by the Bank of England, which tends to support GBP.
Market impact
Which way this story pushes each asset. An inference from the story, not a measured move.
GBP
Pushes up
DaysMedium confidence
Hotter, accelerating CPI reinforces case for further BoE rate hikes, supporting sterling
What could change this
Weaker UK PMI or retail sales data could ease pressure for further BoE tightening and weaken this support.
GBP/USD before and after this story
1.3378-0.17%vs previous close
-0.02%
since this story
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