No surprises: UK CPI slides to 1.5% y/y, as expected. Other figures are mixed: Core CPI rises to 1.9% and the RPI slides to 2.4%. The House Price Index remains strong at +11.7%.
GBP/USD has originally bounced off the lows, but remains in low ground and now resumes its falls, trading at 1.6160.
UK headline inflation was expected to slide to 1.5% y/y in August from the disappointing 1.6% in July. The Retail Price Index carried predictions for a rise of 2.5% y/y, like last month. Core CPI was predicted to stay at 1.8%. The HPI was expected to rise 10.6% after 10.2% in July.
GBP/USD broke down below 1.6220 towards the release and traded around 1.6170.
The PPI Input was expected to rise 0.1% m/m and PPI Output to slide by 0.1%. The actual numbers are a slide of 0.6% in PPI Input and a slide of 0.1% in PPI Output.
The main theme for the UK this week is clearly the referendum on Scottish independence due on Thursday. The polls show it is too close to call, but there is a tendency towards a No vote.Get the 5 most predictable currency pairs