GBP/USD slips and rebounds after mixed UK inflation data

The latest UK inflation data has just been released and it has been mixed. That is to say that CPI has fallen below consensus on a monthly and annualised basis, where RPI has risen slightly. The annual reading is the one that matters most and on CPI that has dropped back to a rate of 3.4%. The markets had expected a reading of 3.5%. The core rate has risen by 4.5%, where 4.6% was forecast. Both of those are lower than last month though. However, retail prices (RPI) have actually risen above consensus. The annualised rate is now at 4.5%, where the markets expected 4.4%. The Pound did fall immediately on the news touching 1.2700, but it has lifted very soon afterwards and right now back to around 1.2720. The conclusion to this data; is that it is unlikely to change the outlook for the BOE decision tomorrow