GBP/USD battles 1.3800 after UK CPI misses estimates with 3.1% YoY in September

  • UK CPI rises by 3.1% YoY in September vs. +3.2% expected.
  • Monthly UK CPI arrives at 0.3% in September vs. +0.4% expected.
  • GBP/USD holds steady around 1.3800 on downbeat UK CPIs.

The UK Consumer Prices Index (CPI) 12-month rate came in at +3.1% in September when compared to +3.2% recorded in August while missing expectations of a +3.2% print, the UK Office for National Statistics (ONS) reported on Wednesday. 

Meanwhile, the core inflation gauge (excluding volatile food and energy items) fell to 2.9% YoY last month versus 3.1% registered in August, falling short of the consensus forecast of 3.0%.

The monthly figures showed that the UK consumer prices arrived at 0.3% in September vs. 0.4% expectations and 0.7% prior.

Main points (via ONS):

The largest upward contribution to the September 2021 CPIH 12-month inflation rate came from transport (0.91 percentage points).

Restaurants and hotels made the largest downward contribution to the change in the CPIH.

FX implications:

In an initial reaction to the downbeat UK CPI numbers, the GBP/USD pair eased a few pips below 1.3800.

The spot was last seen trading at 1.3802, up 0.05% on the day.

About the Author

You may also like these