- UK CPI rises 0.4% YoY in Feb vs. +0.8% expected.
- Monthly UK CPI arrives at +0.1% in Feb vs. +0.5% expected.
- GBP/USD remains unfazed by the downbeat data but defends 1.3700.
The UK Consumer Prices Index (CPI) 12-month rate came in at +0.4% in February when compared to +0.7% booked in January while missing expectations of a +0.8% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) dropped to +0.9% YoY last month versus +1.4% booked in January, missing the consensus forecast of +1.4% by a big margin.
The monthly figures showed that the UK consumer prices arrived at +0.1% in February vs. +0.5% expectations and -0.2% prior.
Main points (via ONS):
“The largest upward contribution to the CPIH 12-month inflation rate came from transport (0.30 percentage points).”
“Falling prices for clothing, second-hand cars, and games, toys and hobbies resulted in the largest downward contributions to the change in the CPIH 12-month inflation rate between January and February 2021.”
“These were partially offset by large upward contributions from rising prices for motor fuels, and housing and household services overall.”
Following the downbeat UK CPI numbers, the GBP/USD pair held onto its losses above 1.3700 amid a broadly firmer US dollar.
The spot was last seen trading at 1.3710, down 0.29% on a daily basis.