CPIH m/m comes in at 0.5% against 0.1% consensus

The UK’s CPIH m/m data, released today, showed a print of 0.5%. This figure was significantly above the consensus expectation of 0.1%, representing a 400.0% surprise. The previous month’s reading was 0.2%.

Following the release, the British Pound showed varied movement against major currencies. Fifteen minutes after the data, EURGBP was up 5.0 pips. GBPAUD moved up 0.2 pips. GBPCAD declined 6.4 pips, GBPCHF was down 11 pips, GBPJPY fell 25 pips, and GBPNZD decreased 24 pips. GBPUSD also moved down 7.0 pips. These initial movements are generally smaller than the median 1-hour moves observed after past CPIH releases. For instance, GBPUSD’s 7.0 pip move is less than its median 1-hour move of 15 pips. Similarly, GBPCAD’s 6.4 pip move is smaller than its median 1-hour move of 21 pips. However, GBPJPY’s 25 pip move is larger than its median 1-hour move of 18 pips.