UK Inflation Data Comes In As Expected With The Headline Rate At 2.4%
UK inflation data comes in as expected with the headline rate at 2.4% as of May and unchanged vs Apr.
The Core rate was also in line with forecasts to print 2.1% again, and these numbers net-net can be seen to be a positive as the BoE has one less problem to address - unlike at the start of the year. With ex-bonus earnings dipping a little yesterday - from 2.9% to 2.8% - higher (CPI) levels would be a detractor on real earnings, but this can be discounted now as we turn our attention to retail sales data (in terms of the UK economy only) which is due out tomorrow. Naturally, all such factors are taken amid the Brexit backdrop, but at least we have some unity in government after the Commons voted down the proposed amendments to the EU Withdrawal Bill last night.
Cable still looks intent on testing the 1.3300 base however, with the flow pretty much in motion ahead of the numbers, and this looks to be driven by EUR/GBP which is not giving up on 0.8800+ levels.