In June, the UK CPI increased by 2.5 percent year on year, compared to +2.2 percent projected.
In June, the UK CPI rose to +0.5 percent, compared to the projected +0.2 percent.
On optimistic UK CPIs, the GBP/USD climbs a few ticks to 1.3850.
The UK Office for National Statistics (ONS) stated on Wednesday that the 12-month Consumer Prices Index (CPI) rate in June was +2.5 percent, up from +2.1 percent in May and surpassing predictions of +2.2 percent.
Meanwhile, core inflation (excluding volatile food and energy goods) increased rapidly by 2.3 percent YoY in June, compared to +2.0 percent in May, outperforming the consensus prediction of +2.0 percent.
Consumer prices in the United Kingdom increased by 0.5 percent in June, compared to +0.2 percent estimates and +0.6 percent the month before.
“Transport (0.80 percentage point) had the highest upward contribution to the CPIH 12-month inflation rate.”
“Food, used vehicles, clothing and footwear, eating and drinking out, and motor fuel prices grew in 2021 but generally declined in 2020, contributing the most to the shift in the CPIH 12-month inflation rate between May and June 2021.”
“These were largely countered by a significant negative contribution from games, toys, and hobbies, where prices declined this year after rising the previous year.”
The GBP/USD pair popped a few pips towards the 1.3850 level in an initial reaction to the optimistic UK CPI statistics.
The price of the spot was last spotted at 1.3841, up 0.24 percent on the day./n
