September Inflation Numbers Hit the Pound
Inflation numbers came in softer than expected, which should ease pressure on the BoE further as the British Government attempts to garner a Brexit deal
September inflation figures out of the UK morning weighed on the Pound, with the annual rate of inflation easing from an August 2.7% to 2.4%, coming up short of a forecasted 2.6%.
Month-on-month, consumer prices rose by just 0.1%, following August’s 0.7% rise, which was also softer than a forecasted 0.2% rise.
According to figures released by the Office for National Statistics, the largest contribution to the softer inflation numbers came from food and non-alcoholic beverages, with transport and clothing & apparel prices also weighing, while support came from rising energy prices.
On the plus side, producer input prices jumped by 1.3% in September, off the back of an upwardly revised 1.2% rise in August, which was better than a forecasted 0.8% increase.
The Pound slipped from $1.31492 to $1.31241 before recovering to $1.314 levels, with focus now shifting to the EU Summit, where Brexit is one of the main agendas of the day, pressure building on the British Prime Minister to deliver or leave without a deal.
