UK CPI YoY Stands at 2.5%, Monthly CPI Advances by 0.5%, British Pound Gains Slightly Against the Euro - 18.9.2012
UK Consumer Price Index rose by 2.5 per cent in August on annual terms, less than 2.6 per cent increase in July according to the Office of National Statistics. Economists were expecting UK CPI to drop slightly to 2.5 per cent and the reading was as expected. On monthly terms the UK CPI rose by 0.5 per cent in August as expected compared to a 0.1 per cent increase in July.
The biggest downward influence in the CPI comes from household sector, clothing and footwear and was partially offset by upward pressure from transport sector. The British pound is trading at 5-month highs against the US dollar at 1.6239 while it remained unchanged after the release of the UK CPI data. The Euro fell slightly versus the British pound from 0.8060 to 0.8048 after the release.