UK May inflation data now out 13 June

  • 0.5% prev
  • yy +2.9% vs 2.7% exp/prev
  • core CPI 2.6% yy % vs 2.4% exp/prev
  • CPIH yy 2.7% vs 2.6% exp / prev
  • RPI mm 0.4% vs 0.3% exp vs 0.5% prev
  • yy 3.7% vs 3.5% exp/prev
  • RPI ex mortge interest payments yy 3.9% vs 3.8% exp/prev
  • Retail Price Index 271.7vs 271.4 exp vs 270.6 prev
  • HPI yy April 5.6% vs 3.6% exp vs 4.5% prev up from 4.1%

Says the ONS:

  • Rising prices for recreational and cultural goods and services (particularly games, toys and hobbies) was the main contributor to the increase in the rate.
  • There were smaller upward contributions from increased electricity and food prices.
  • These upward contributions were partially offset by falls in motor fuel prices, and air and sea fares, the latter two influenced by the timing of Easter in April this year.

Stronger than expected/prev headline data but tempered by softer PPI also out and that means softer headline readings in the pipeline.

I did say in my preview beware the knee-jerk and trade the reality check.

GBPUSD 1.2693 again from 1.2724. Keep selling those rallies but good two-way business to be had still if you prefer to be long.

Full story from the ONS here