Forex »

Further Rise In UK Inflation

James Boston
Share on StockTwits
Published on
www.finances.com
Further Rise In UK Inflation

It could be called Inflation Day in the UK today as the National Statistics office provides a thorough across the board set of price growth data. The headline is the Consumer Price Index (CPI), this has come in at 1.9% year on year compared to 1.6% in May and a consensus estimate for 1.5% price expansion. Month on month this is now reading at 0.2% in contrast to the prior month’s contraction of -0.1%, no change had been expected in this figure. The Core CPI now stands at 2.0%, this is a year on year reading to June and compares to May’s 1.6% rise, the consensus was for 1.7% growth.

The Retail Price Index (RPI) is continuing to expand, this now stands at 2.6% year on year for June, the May equivalent was 2.4% and a reading of 2.5% was anticipated by the markets. Month on month the RPI expanded 0.2%, this compares to 0.1% growth the previous month and a consensus estimate for a flat 0% reading.

The Producer Price Index (PPI) completes the inflation picture this morning, on the Input side the year on year number is now reading at -4.4%, this follows 5.0% expansion in May, consensus estimates for this figure were for a contraction of -4.5%. Month on month the reading is showing at -0.8% contraction compared to 0.9% growth in May and a market consensus estimate for 0.1%.

PPI Output is reading at 0.2% year on year for the month of June compared to 0.5% in May, no change was anticipated to this figure. Month on month this is now -0.2% in comparison to a fall of -0.1% the previous month, markets had expected expansion of 0.1% in this index.

Inflation overall is now very close to the Bank of England target rate of 2.0%, this will no doubt add a little pressure for an early rate hike.

Share on StockTwits


Iron FX 1.11156/1.11128 2.8
XM Markets 1.09948/1.09928 2
FxPro 1.10184/1.10171 1.3
FXCM 1.13943/1.13912 3.1