Investing.com – Consumer price inflation in the U.K. rose more-than-expected in July, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 4.4% in July from 4.2% in June.
Analysts had expected U.K. consumer price inflation to rise by 4.3%.
Month-over-month, consumer price inflation was flat, confounding expectations for a 0.1% decline.
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 July, broadly in line with expectations and up from 2.8% in June.
The retail price index rose 5.0% in July, unchanged from the previous month and in line with expectations.
Following the release of that data, the pound pared losses against the U.S. dollar, with GBP/USD shedding 0.25% to trade at 1.6350.
Meanwhile, European stock markets were sharply lower. The FTSE 100 tumbled 1.25%, the EURO STOXX 50 plunged 2.1%, France’s CAC 40 plummeted 2.05%, while Germany's DAX sank 2.5%.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 4.4% in July from 4.2% in June.
Analysts had expected U.K. consumer price inflation to rise by 4.3%.
Month-over-month, consumer price inflation was flat, confounding expectations for a 0.1% decline.
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 July, broadly in line with expectations and up from 2.8% in June.
The retail price index rose 5.0% in July, unchanged from the previous month and in line with expectations.
Following the release of that data, the pound pared losses against the U.S. dollar, with GBP/USD shedding 0.25% to trade at 1.6350.
Meanwhile, European stock markets were sharply lower. The FTSE 100 tumbled 1.25%, the EURO STOXX 50 plunged 2.1%, France’s CAC 40 plummeted 2.05%, while Germany's DAX sank 2.5%.