Home›Forex›Central Banks›UK core inflation persistence complicates BoE rate path

UK core inflation persistence complicates BoE rate path

Nomura said headline CPI eased to 2.6% in June, but sticky core and services inflation, including upstream services costs, keeps the Bank of England’s outlook harder to chart.

Reported · Written up by our desk · Central Banks

Nomura strategists analyzed the UK’s latest June inflation data, noting that headline CPI slowed to 2.6%, matching the level the Bank of England had been expecting.

The same report said the bigger challenge is that core and services inflation stayed firm, with falling food prices offset by strength in areas such as information processing equipment and hotel and catering services.

Nomura also pointed to a sharp rise in upstream services prices, especially transport and storage, as a key reason inflation progress may not be straightforward for the central bank.

In FX markets, FXStreet noted the pound was unable to build momentum after the softer CPI print, with GBP/USD staying below 1.3400 and investors continuing to watch other risk headlines.

Latest closeGBP/USD 1.338 ▼0.4%

More like this

Sources