At 7:00am BST, we learned CPI and PPI inflation data from the UK, which turned out to be below analysts' expectations!
CPI inflation (y/y). Currently: 8.7% y/y. Expected: 8.2% y/y. Previously: 10.1% y/y.
Core CPI inflation (y/y). Current: 6,8% % y/y. Expected: 6.2% y/y. Previously: 6.2% y/y.
CPI inflation (m/m). Current: 1,2% % y/y. Expected: 0.8% m/m. Previously: 0.8% m/m.
Core CPI inflation (m/m) Currently: 1,3% % m/m. Expected: 0.7% m/m. Previously: 0,9%.
PPI inflation (y/y). Currently: 5,4% y/y. Previously: 8,7% y/y.
PPI core inflation (y/y). Currently: 6% y/y. Previously: 8,5% y/y.
UK PPI Output NSA (M/M) Apr: 0.0% (est 0.2%; prevR 0.0%)
UK PPI Input NSA (M/M) Apr: -0.3% (est 0.2%; prev 0.2%)
The slowdown in price growth is largely due to a base effect, as the almost 50 per cent increase in home energy prices last year falls out of the annual comparison.
The GBPUSD pair reacted strongly upwards to today's inflation reading, which increased the chances of a hawkish turn from the BoE. Source: xStation5
Daily summary: Muted rebound on Wall Street 🗽 Metals attempt to recover as the U.S. dollar weakens
Bank of Canada holds rates unchanged - will USDCAD react?
RBNZ raises interest rates again, yet NZD falls after the decision ⚔️
Economic calendar: central bank decisions and US ADP report in focus 🔎
