Forexpros - Consumer price inflation in the U.K. rose more-than-expected in July, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 4.4% in July from 4.2% in June.
Analysts had expected U.K. consumer price inflation to rise by 4.3%.
Month-over-month, consumer price inflation was flat, confounding expectations for a 0.1% decline.
The rate of inflation was more than double the Bank of England's 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by a seasonally adjusted 3.1% in July, broadly in line with expectations and up from 2.8% in June.
The retail price index rose 5.0% in July, unchanged from the previous month and in line with expectations.
Following the release of that data, the pound pared losses against the U.S. dollar, with GBP/USD shedding 0.25% to trade at 1.6350.
Meanwhile, European stock markets were sharply lower. The FTSE 100 tumbled 1.25%, the EURO STOXX 50 plunged 2.1%, France's CAC 40 plummeted 2.05%, while Germany's DAX sank 2.5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
