CPIH y/y comes in at 3.3% against 2.6% consensus

The UK’s CPIH year over year inflation rate was reported at 3.3%. This figure came in above the consensus expectation of 2.6%. It also represented an increase from the previous reading of 2.8%. The surprise against the consensus forecast was 26.9%.

In the 15 minutes following the release, the market reaction for Sterling was mixed. EURGBP moved up 5.0 pips, while GBPAUD saw a minor increase of 0.2 pips. GBPCAD moved down 6.4 pips, GBPCHF moved down 11 pips, GBPJPY moved down 25 pips, GBPNZD moved down 24 pips, and GBPUSD moved down 7.0 pips. Compared to historical movements, the 15-minute moves for EURGBP, GBPAUD, GBPCAD, and GBPUSD were small relative to their median 1-hour moves of 10 pips, 20 pips, 21 pips, and 15 pips respectively. GBPCHF’s move of 11 pips was also below its median 1-hour move of 15 pips. GBPJPY’s move of 25 pips and GBPNZD’s move of 24 pips were larger than their respective median 1-hour moves of 18 pips and 20 pips.