Inflation in the UK falls to the lower bound of the BOE’s target: 1% y/y. This comes with a fall of 0.3% in prices m/m in November. Also Core CPI falls short with a slide to 1.2% y/y. The RPI is down to 2%. All in all, we have lower than expected numbers in all key figures.
GBP/USD slides to 1.5630. Update: As Carney continues speaking, the pound eventually bounces back up.
More data: HPI slides from 13.2% to 10.4% y/y. PPI Input is down 1% m/m as expected. PPI Output is the only positive surprise with +0.2% m/m.
The United Kingdom was expected to report a slide in headline inflation to 1.2% in November after 1.3% in October. Core CPI was predicted to remain unchanged at 1.5% y/y and the Retail Price Index (RPI) carried predictions for a slide to 2.2% after 2.3% beforehand. GBP/USD traded around 1.5655.
Earlier, the Bank of England released its stress test results, which weren’t really shocking. BOE governor Mark Carney is giving a press conference about the results at this time.