UK July CPI rose 2.9% year-over-year, matching expectations, while core inflation held steady at 2.6%.
The British Pound (GBP) climbed against the US Dollar (USD) on Wednesday, trading above 1.3550 after UK inflation data aligned with market forecasts. The GBP/USD pair remained within its recent range, below the 1.3570 resistance level, following the release of July’s Consumer Price Index (CPI).
UK CPI increased 0.3% month-over-month and 2.9% year-over-year, up from 0.1% and 2.6% in June, respectively. Core CPI held steady at 2.6%, defying expectations of a slight decline. Producer input prices cooled more than anticipated, while retail price growth accelerated to its fastest pace since March.
Earlier in the week, UK employment data disappointed, with unemployment holding steady and wage growth slowing, though jobless claims unexpectedly declined.