UK July CPI +10.1% vs +9.8% y/y expected

• Prior +9.4%
• Core CPI +6.2% vs +5.9% y/y expected
• Prior +5.8%

UK inflation has hit double-digits as the annual figure for July comes up above 10%, beating estimates. While this is likely to keep the BOE on the tightening path, it is also a signal of worsening conditions for consumers. The cost-of-living crisis is already weighing heavily on households and this will just add on top of that, alongside higher energy prices.

The pound is a bit jumpy on the data with cable moving up to 1.2140 from 1.2120 before falling back rather quickly. As much as this vindicates more rate hikes by the BOE, I don't see much upside to that considering that markets are well prepared for what the BOE has to offer in the months ahead. Instead, if the staggering weight of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term crushes consumption activity, I can see this print being worked to be a negative for the pound instead.