The CPI in the United Kingdom grew 6.7% year on year in August, compared to the 7.1% predicted.
Monthly CPI inflation in the United Kingdom rose to 0.3% in August, compared to the 0.7% projected.
On the back of weak UK inflation data, the GBPUSD retests multi-month lows around 1.2350.
The Office for National Statistics (ONS) said on Wednesday that the United Kingdom’s (UK) annual Consumer Price Index increased 6.7% in August, following a 6.8% increase in July. The market expected a gain of 7.1%.
The Core CPI index (excluding volatile food and energy goods) increased 6.2% YoY in the reporting month, compared to a 6.9% increase in July, but fell short of expectations of a 6.8% increase.
Meanwhile, The UK Consumer Price Index rose 0.3% month on month in August, compared to 0.7% expected and a 0.4% fall in the previous month.
The UK Retail Price Index (RPI) climbed 0.6% month on month and 9.1% year on year in August, both of which fell short of predictions.
CPI reaction on market.
As a result of the UK CPI inflation data, the GBPUSD pair fell roughly 40 pips to new multi-month lows below 1.2350. As of this writing, the spot is down 0.35% on the day, trading at 1.2345.
