UK CPI YoY Rises to 2.6%, Monthly CPI Advances by 0.1%, British Pound Gains Slightly - 14.8.2012
UK Consumer Price Index rose by 2.6 per cent in July in annual terms, up from 2.4 per cent in June, according to the Office of National Statistics. In July 2012 it had the greatest increase since September 2011, showing the first rise after 3 straight months of decreases. Economists were expecting the UK CPI to increase by 2.3 per cent however they missed. On monthly basis the UK CPI rose unexpectedly by 0.1 per cent compared to a 0.4 per cent decrease in June.
The biggest upward influence on the CPI comes from transportation, specifically from air fares and from clothing & footwear. The British pound inched up at 1.5728 against the US dollar after the release of the CPI figures but then rapidly returned back to 1.5701. The Euro fell slightly versus the British pound from weekly highs at 0.7883 to 0.7871.