Sterling drops sharply as consumer inflation missed market expectations.
Headline CPI was unchanged at 2.4% yoy in June, below expectation of 2.6% yoy.
Core CPI slowed to 1.9% yoy, down from 2.1% and missed expectation of 2.2%.
RPI accelerated to 3.4% yoy, up from 3.3% yoy but missed expectation of 3.5% yoy.
Also from UK:
PPI input rose to 10.2% yoy, up from 9.6% yoy and above expectation of 10.2% yoy.
PPI output rose to 3.1% yoy, up from 3.0% yoy but missed expectation of 3.2% yoy.
PPI output core was unchanged at 2.1%, below expectation of 2.3%.
BoE policymaker are likely disappointed by the lack of pick up in inflation. Is an August rate hike still on the table? This is now a question to consider.
GBP/USD breaks 1.3048 low and it’s now on course for 1.2874 fibonacci level.
