The Pound is analyzing the inflation statistics. Overview for 20.03.2018

GBPUSD is trading a bit downwards on Tuesday after the United Kingdom published several reports on the British inflation.

On Tuesday, the British Pound is weakening a little bit against the USD. The current quote for the instrument is 1.4018.

In the afternoon, the United Kingdom published several reports on the February numbers of the Consumer Price Index and other indicators. So, the Inflation Rate decreased up to 2.7% y/y after being 3.0% y/y in January and against the expected reading of 2.8% y/y.  The Core Inflation Rate decreased up to 2.4% y/y in February after being 2.7% y/y in the previous month.

The Producer Price Index Input lost 1.1% m/m in February after adding 0.4% m/m the month before and against the expected reading of -0.9% m/m. The PPI Output didn’t change after expanding by 0.1% m/m in January.

The HPI continues improving. Last month, the indicator added 4.9% y/y after increasing by 5.0% y/y in January and against the expected reading of +5.1% y/y. The positive tendency continues, but the momentum seems to slow down a bit.

So, what do all these reports mean? Probably, they mean the Bank of England won’t have to revise the benchmark rate earlier than planned. It would be necessary if the CPI grew very fast. However, right now, one can see that the inflation rate may slow down by itself without any interference.

RoboForex Analytical Department