Inflation data in the UK

• Consumer Price Index (CPI) in the UK (m / m), actual 0.0%, forecast 0.2%.
• Consumer Price Index (CPI) in the UK (y / y), actual 2.4%, forecast 2.6%.
• Purchasing Producer Price Index in the UK (m / m), actual 0.2%, forecast 0.4%.

The report on inflation in the UK deteriorated in all respects, and this despite the fact that the expectations for inflation were very positive. Particular concern was caused by the CPI on a monthly basis, which showed zero dynamics, which in the end may indicate a decrease in this indicator. It is also worth noting that the annual CPI for the third consecutive month remains at 2.4%. In turn, you can consider both slowing down the decline, and significant resistance.

Fig. 1. Consumer price index in the UK (y / y) chart

 

The British pound, regarded the slowdown in inflation as a negative factor, which increased political risks in the UK. The main support levels of  for the GBP / USD are: 1.3000 and 1.2970.

Fig. 2.  GBP / USD chart. The current price is 1.3020.

Read also: “Internal correlation of the foreign exchange market: the Ghost of the past or the instrument of trade of the future?”

Hanzenko Anton

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