UK CPI came in as expected at 3.5%. Core CPI came in slightly better at 2.5%. GBPUSD is trading on session highs of 1.5944.. #fx #forex
3.5% was “not” expected more like 3.4% but highlights the stubborness of UK inflation and the headache it gives to the Bank of England’s Monetary policy committee in considering further QE measures to stimulate growth as consumers see a further erosion of their hard earned income by continuing price rises. That 2% CPI target level by Q4 2012 looks highly improbale now with 2.8% a more realistic goal. Over to you Sir Mervyn.
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