UK Inflation Data Bring The Bears Out Of Hibernation

2024-10-16 | BoE , CPI , CPI Report , GBPUSD , Inflation , UK CPI

UK Inflation Slows in September

In September, the UK inflation rate, measured by the Consumer Price Index (CPI), rose by 1.7%, down from 2.2% in August, according to the Office for National Statistics.

This increase was lower than the predicted 1.9%, staying below the Bank of England’s 2% target.

Core Inflation Misses Estimates

Core inflation, which excludes food and energy, grew by 3.2% in September compared to 3.6% in August, missing the expected 3.4%.

Service sector inflation dropped to 4.9% in September from 5.6% in August, falling below the important 5% mark.

Month-over-Month Inflation Stalls

The month-over-month CPI remained flat at 0% in September, after a 0.3% rise in August, while the market had expected a 0.1% increase.

Given the lower-than-expected inflation data, there is speculation that the Bank of England might consider a rate cut in the coming weeks to support the economy.

GBP/USD Bears in focus with a 77 PIP downward movement.

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