Investing.com – Consumer price inflation in the U.K. rose in line with expectations in August, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 4.5% in August from 4.4% in July, broadly in line with market expectations.
Month-over-month, consumer price inflation rose 0.6%, in line with expectations.
The rate of inflation was more than double the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by a seasonally adjusted 3.1% in August, unchanged from July and above expectations for a 3.0% increase.
The retail price index rose 5.2% in August, up from 5.0% in the previous month and higher than expectations for a gain of 5.1%.
Following the release of that data, the pound pared losses against the U.S. dollar, with GBP/USD shedding 0.41% to trade at 1.5798.
Meanwhile, European stock markets were broadly lower. The FTSE 100 fell 0.75%, the EURO STOXX 50 tumbled 1.3%, France’s CAC 40 dropped 1.8%, while Germany's DAX retreated 0.95%.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 4.5% in August from 4.4% in July, broadly in line with market expectations.
Month-over-month, consumer price inflation rose 0.6%, in line with expectations.
The rate of inflation was more than double the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by a seasonally adjusted 3.1% in August, unchanged from July and above expectations for a 3.0% increase.
The retail price index rose 5.2% in August, up from 5.0% in the previous month and higher than expectations for a gain of 5.1%.
Following the release of that data, the pound pared losses against the U.S. dollar, with GBP/USD shedding 0.41% to trade at 1.5798.
Meanwhile, European stock markets were broadly lower. The FTSE 100 fell 0.75%, the EURO STOXX 50 tumbled 1.3%, France’s CAC 40 dropped 1.8%, while Germany's DAX retreated 0.95%.