GBPUSD continues consolidating after a massive drop earlier.
The British Pound is still consolidating against the USD. The current quote for the instrument is 1.3422.
According to the statistics published today, the British CPI showed 4.2% y/y in October after being 3.1% y/y the month before and against the expected reading of 3.9% y/y. The Core3 CPI went from 2.9% y/y to 3.4% y/y.
It’s pretty clear already that the Bank of England is not going to respond to an inflation boost because it believes that the economy may reach stability without any interference. Of course, it will take some time but the British regulator is in no hurry. This might be the reason why the Pound remains quite calm today.
The RPI skyrocketed to 6.0% y/y after being 4.9% y/y in the previous month. The PPI Input and Output added 1.4% m/m and 1.1% m/m against the expected readings of 1.1% m/m and 0.7% m/m respectively.
The only thing which is beyond doubt is that inflation will go up for at least a couple of months but may start decreasing early in 2022.