CPIH m/m comes in at 0.2% against 0.4% consensus

UK CPIH month over month inflation came in at 0.2% for the latest period. This figure was below the consensus expectation of 0.4%. The actual print represents a -50.0% surprise compared to analyst forecasts. The previous month’s reading was also 0.2%.

Following the release, the British Pound saw limited movement against major currencies in the initial 15 minutes. GBPUSD gained 3.0 pips, while GBPJPY rose 3.7 pips. GBPNZD advanced 4.5 pips. GBPCAD was up 1.7 pips, and GBPAUD gained 0.9 pips. GBPCHF saw a slight decline of 0.5 pips. EURGBP remained unchanged at 0.0 pips. These movements are relatively small when compared to the median 1-hour moves observed after past CPIH releases. For instance, GBPUSD typically sees a median 1-hour move of 16 pips, and GBPJPY a median 1-hour move of 19 pips.