UK inflation easing off, but of little consequence at the moment
The September inflation data this morning out of the UK was never going to be a market mover, as traders have bigger fish to fry as they try and decipher the messages coming out of the various factions within the UK with regards to the latest deal proposed by UK PM Johnson. Clearly, in giving some of the concessions need to get the EU onside, he has tested some of the red lines within his party and amongst the DUP.
As for the data, UK headline CPI comes in at 1.7%, after a lesser than expected 0.1% rise on the month. This means the annualised rate is unchanged from August. Forecasts were for a slightly higher rise on the month of 0.2%. However, core CPI was as expected, rising from 1.5% to 1.7% in line with market forecasts. Producer price inputs were markedly lower, however, which may be surprising given the level of the GBP exchange. Even so, little notice is being taken by the market.