GBPUSD is gaining weight; no one is concerned about inflation.
The British Pound managed to reduce the recent pressure and is currently moving upward. The current quote for the instrument is 1.3829.
The statistics published on Wednesday showed that the British CPI was 3.2% y/y in August after being 2.0% y/y the month before and against the expected reading of 2.9% y/y. The Core CPI showed 3.1% y/y against market expectations of 2.9% y/y.
Today’s readings are the highest over the last 9 years. There is an opinion that the inflation boost took place because of the government’s policy to help enterprises and businesses. For example, from Monday to Wednesday, there was a 50% discount for bills under £10 for a person in eating establishments.
Now the program is over, so the prices are back to their normal values, thus influencing the overall inflation in the country.
It is rather unlikely that the Bank of England, which usually sticks to its conservative monetary policy, will comment on the inflation boost this time. What is even more unlikely is that the regulator will do something about it.
The RPI in the UK showed 4.8% y/y in August after being 3.8% y/y in July and against the expected reading of 4.6% y/y.
The PPI Input and Output were 0.4% m/m and 0.7% m/m against the expected readings of 0.2% m/m and 0.4% m/m respectively.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.