UK inflation halves to 0.5% in December, lower than expected. While the plunge is related to the fall in the price of oil, also other measures are not shining: core CPI fell to 1.3% and RPI to 1.6% – both lower than expected. This is the lowest level of inflation since May 2000 – nearly 15 years. GBP/USD falls below 1.51. The low so far is 1.5078: this is still above the cycle lows but a very big fall of 100 pips if we look at levels seen early in the day. The UK was expected to report a big fall in y/y CPI to 0.7% for December 2014 after 1% in November. Such an outcome is below the 1-3% target range the BOE has to maintain. This implies an Inflation Letter from Governor Carney to Chancellor of the Exchequer George Osborne. GBP/USD traded lower towards the release, sliding down from near 1.52 to around 1.5110. Other inflation figures: Core CPI was expected to rise from 1.2% to 1.4%. The actual is 1.3%. The Retail Price Index (RPI) carried expectations for a drop from 2% to 1.7%. Actual: 1.6%. The House Price Index was predicted to cool from 10.4% to 10.1%. The actual number is 10.0%. PPI Input was expected to fall 2.5% m/m. Actual: -2.4%. PPI Output was expected to fall 0.1% m/m. Actual: -0.3%. Here is the preview: GBP/USD: Trading the British CPI The British pound began 2015 with a big fall against the US dollar, mostly due to the strength of the latter. After a slide to the 1.50 handle, we have seen a recovery following the mixed NFP report from the US. During 2014, there were expectations for a rate hike from the UK in the spring of 2015 or even the autumn of 2014. A rate hike may come only well after the May 2015 elections, perhaps towards the end of the week. More: GBP/USD: Selling Overdone; Buy On Further Dips – ANZ Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next UK inflation plunges FxPro - Forex Broker 8 years UK inflation halves to 0.5% in December, lower than expected. While the plunge is related to the fall in the price of oil, also other measures are not shining: core CPI fell to 1.3% and RPI to 1.6% - both lower than expected. This is the lowest level of inflation since May 2000 - nearly 15 years. GBP/USD falls below 1.51. The low so far is 1.5078: this is still above the cycle lows but a very big fall of 100 pips if we look at levels seen early in the day. The UK was expected to report a big… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.