The UK Consumer Price Index has risen by 3.2% YoY in August, above 2.9% expected. On a monthly basis, CPI is up 0.7% vs. 0.5% that was predicted. Core CPI rose by 3.1% yearly, also above 2.9% projected. Other measures also exceeded estimates.

GBP/USD has hit a daily high of 1.3824 in the immediate aftermath. Cable traded near 1.38 earlier in the day. Higher inflation raises the chances that the Bank of England raises rates earlier than previously anticipated.

The economic calendar pointed to an annual increase of 2.9% in headline CPI in August after 2% in July. Core CPI was also projected to result in a similar leap – from 1.9% to 2.9%.

Bank of England Governor Andrew Bailey recently said that the Monetary Policy Committee was split 4:4 on if conditions have been met to raise interest rates. On Tuesday, the UK report

GBP/USD traded just above 1.38 ahead of the publication down from higher levels recorded on Tuesday in response to weaker-than-estiamted US inflation figures.

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