CPI (YoY) (U.K.)
Event Date: Wednesday, November 15, 2023
Event Time: 07:00 CET
Updated Sunday, November 12, 2023
Inflation used to be strong several year ago in the UK, but cooled off due to the coronavirus restrictions, falling to 0.2% in September last year, It remained volatile until March, but in April headline CPI increased to 1.5% YoY, while core CPI to 1.3%. They were expected to increase further to 1.8% and 1.5% respectively in May, but jumped higher to 2.0% and 2.1%. In June we saw another increase to 2.3% and 2.5% respectively, but they cooled off in July to 2.0% each although increased to 3.2% in August. In October we saw another increase to 4.2%, while November is expected at 4.8%. In January 2022, the headline CPI inflation is expected to remain at 5.4%, while core CPI to tick higher to 4.3% from 4.2% in December. In January it increased to 5.5% while in February it increased to 6.2% and it's expected to increase further to 7.0% in March and jumped 9.1% in April, while May ticked higher to 9.1%. By September CPI increased to 10.0% while in October it jumped to 11.1%. The slowdown continued until April while in May we saw another jump to 8.7%. By July the CPI fell to 6.8% but it is expected to jump to 7.1% in August. Please follow us for live coverage of this event by market analysts.
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About CPI (YoY) (U.K.)
U.K. CPI (MoM) is a primary measurement of inflationary pressures facing the GBP. It is derived and presented by the National Statistics Bureau, a governmental entity. U.K. CPI (MoM) is a comparison of retail prices facing a typical basket of goods and services, compared on a month-over-month basis. Monetary policy decisions, trade balance, and consumer confidence are sensitive to CPI. Currency markets involving the GBP are receptive to a growing CPI, as it is a signal of inflation. As inflationary pressures grow or reside, the Bank of England (BOE) crafts monetary policy accordingly. High CPI values are often viewed as a precursor for tightening monetary policy toward the GBP, while low readings are conducive to a dovish tone.U.K. CPI is capable of swaying GBP valuations dramatically. Strong values lead to bullish participation for the GBP and lagging CPI facilitates bearish price action.