The UK inflation report released a while ago was a bit of a mixed bag. You can tell this by only taking a quick glance at the economic calendar. Half of the numbers in this report are green while the rest are red.

PPI (producer price inflation) input and output are green, as well as the HPI y/y. This means that they beat the expectations. 

CPI (consumer price index), core CPI, and RPI (retail price index) are displayed in red. Even within the numbers, there is confusion. CPI and RPI might be red because they´re below expectations, but they are higher than last month. 

The thin yellow line remained constant this month. 

The only number which remained unchanged this month is the core inflation and that´s what the market is more interested in at the moment. All the other pieces of this report showed a pickup, but the market knows energy prices have a lot to say about this. 

So, the core CPI is the best indicator of inflation. It remained frozen again and the BOE (Bank of England) must be relieved. With the weakening Pound and the recent energy inflation, those guys have been under some pressure to hike interest rates. 

Both came at the same time, but we see now that the CPI is not flying anywhere anytime soon. That´s the reason the GBP pair dived after the release, with GBP/USD about 100 pips lower now. 

By the way, this move lower in Cable is taking the price to some interesting levels and indicators on the H4 forex chart, so I´m watching it for a possible trade anytime soon.