The December UK CPI and RPI inflation reports have just been released. Core Annualised Consumer prices were expected to fall to around 4.9%, from a reading of 5.1% in November. Annualised retail prices were expected to fall to 6.1% in December, from a November rate of 6.3%. The actual data has revealed a higher reading on both counts. The one of most importance here would be the CPI data. Core prices have remains at 5.1% and the non-core rate has actually risen to 4%, from 3.9%. Both the monthly readings on CPI and RPI have risen above consensus too and all this has lifted the pound immediately. The GBP/USD jumped back to above 1.2640 on this news. It is currently trading at 1.2636