Inflation Cools Off Further in UK

The inflation report from Britain was released a while ago and the numbers were pretty much in line with expectations.

Inflation cooled off again this month, but that's not a bad thing

Today is an inflation day for forex traders since we have two major inflation reports being released. The CPI (consumer price index) report from the UK was released a while ago and later in the US session, we have the Canadian CPI report coming out.

Earlier on the German PPI (producer price index) was also released and it grew by 0.1% while expectations were for a 0.1% decline. In Britain, inflation was expected to tick lower in November and it did, but let me just list all the numbers from the inflation report below.

CPI YoY2.3%2.3%2.4%
Core CPI YoY1.8%1.8%1.9%
CPI MoM0.2%0.2%0.1%
PPI Input YoY5.6%4.6%10.3%
PPI Input MoM-2.3%-2.9%-0.8%
PPI Output YoY3.1%2.9%3.3%
PPI Output YoY0.2%-0.1%0.3%
RPI YoY3.2%3.2%3.3%
HPI YoY2.7%3.3%3.0%

As you can see from the table above, which is the best I could put together, most of the important numbers are in line with expectations. What stands out are the HPI YoY (house price index) which cooled off in November. That’s a good thing though since the housing market in Britain has been suffering from high demand and thus the pretty quick rise in house prices, especially in the Southeast, near London.

The PPI (producer price index) input declined by a massive 2.3% which is the first decline since March. Although, that’s smaller than expectation of a 2.9% decline. But these are not the most important inflation figures, so the GBP is little changed from this report.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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