The British pound is again affected by the US dollar. The current quote is 1.2105.
The CPI in January in Britain dropped to 10.1% y/y while the forecast was 10.3% y/y. Month-wise, inflation dropped by 0.6% while investors had expected a decline by 0.4%.
Thus, inflation continues retreating from the peak of 11.1% that it touched at the end of last year.
At the same time, the retail price index in January grew by 0.3% m/m (+13.4% y/y), which was a bad surprise.
The price situation remains unanimous, requiring attention of the Bank of England and cautiousness in long-term planning. The BoE seems to be in the middle of the cycle of interest rate increases. For the pound, inflation signals are depressive.
Source: Roboforex