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UK CPI rises 2.6% YoY in June, keeping inflation above BoE target

Core CPI also increased 2.6% YoY, and sterling nudged slightly higher against the dollar as the print landed below expectations.

Reported · Written up by our desk · Major Pairs

The UK Office for National Statistics reported that headline consumer price inflation rose 2.6% year over year in June, down from 2.8% in May. Markets had expected 2.7% for the June reading.

The data also showed core CPI, excluding volatile food and energy items, climbed 2.6% YoY, matching May and coming in hotter than the 2.5% forecast. On a monthly basis, UK CPI increased 0.1% in June, compared with 0.2% in May.

With the reading still well above the Bank of England's 2% inflation target, the report suggests inflation pressures remain elevated despite losing momentum. In the immediate reaction, the British pound edged lower, while GBP/USD was last shown trading 0.03% higher on the day around 1.3380.

The release comes ahead of the next Bank of England meeting on July 30, after the central bank's June 18 hold. Investors have been looking for a steady approach, with UK consumer inflation viewed as a key input for the BoE and the pound.

Latest closeGBP/USD 1.348 ▼0.5%

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