Forex - UK Inflation increases in June, Retail Inflation rises. | GBP Pound | CountingPips Forex & Currency Trading Blog

July 15, 2008 - Forex Economic News

Forex - UK Inflation increases in June, Retail Inflation rises.

U.K. inflation increased more than expected in June according to data released today by National Statistics. The U.K.'s consumer price index increased by 0.7 percent in June following a May increase of 0.6 percent. The increase brought the annual rate of inflation to 3.8 percent for June after an annual rate of 3.3 percent in May. Economic forecasts had expected the June inflation increase to measure 0.4 percent and the annual rate to reach 3.6 percent. Increases in the prices of fuel, transport costs, food, fruits and non-alcoholic beverages contributed to the rising inflation for the month. Core inflation, excluding energy and food costs, showed an annual increase of 1.6 percent for June following a 1.5 percent increase in May.

U.K. retail prices also increased for the month of June. National Statistics reported today that retail price inflation gained by 0.8 percent in June following a May increase of 0.5 percent. The June annual rate increased to 4.6 percent from 4.3 percent in May. Market forecasts were expecting a 0.5 percent monthly increase for June and a 4.3 percent annual rate in retail inflation. Increases in the prices of fuel, transport costs, food, fruits and non-alcoholic beverages also contributed to the rising retail inflation for the month.

The GBP pound has been on the rise today in the currency trading markets with rises against the European euro and the U.S. dollar. The EUR/GBP pair has been trading around 0.7960 today after opening the trading week above 0.8000. The GBP/USD pair has jumped in trading the last couple of days from opening at approximately 1.9900 on Sunday to trading at 2.0110 in the early U.S. session today.

Tags: UK inflation, gbp pound, gbp/usd, eur/gbp, retail prices, forex trade

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