BREAKING: UK CPI higher than expected. GBPUSD gains

CPI inflation from the United Kingdom (December 2023) came in 4% y/y vs 3.9% exp. and 3.8% previously (0.4% MoM vs 0.2% exp. and -0.2% previously)

• Core CPI inflation y/y: 5.1% vs 4.9% exp. and 5.1% previously (0.6% MoM vs -0.3% previously)
• RPI MoM: 0.5% vs 0.37% exp. and -0.1% previously
• PPI Output prices y/y: 0.1% vs 0.4% exp. and -0.2% previously
• PPI Output prices MoM: -0.2% vs -0.6% exp. and -0.2% previously
• PPI Input prices y/y: -2.8% vs -1.9% exp. and -2.6% previously
• PPI Input prices MoM: -1.2% vs -0.6% and -0.3% previously

We can see the British pound sterling strengthening after the CPI inflation reading suggest persist inflationary risks in UK economy. 

Source: xStation5