GBPUSD continues growing, although its enthusiasm is slowing down.
The British Pound continues rising against the USD on Wednesday, although not as quickly as before. The current quote for the instrument is 1.4191.
According to the data published today, the British CPI was 1.5% y/y in April, the same as expected, after being 0.7% y/y in March. The Core CPI showed 1.3% y/y against 1.1% y/y over the same period of time.
The RPI showed 2.9% y/y in April after being 1.5% y/y the month before and against the expected reading of 2.4% y/y.
The PPI Input added 1.2% m/m after being 1.3% m/m earlier. The PPI Output expanded by 0.4% m/m, the same as expected, after adding 0.5% m/m in the previous month.
Accelerating annual inflation at a global scale is a rather natural process. The United Kingdom is slowly removing social restrictions introduced earlier to fight the coronavirus pandemic. Additional pressure comes from stimulus packages and expanded consumer spending.
As a rule, inflation is not a problem for the Bank of England – the regulator usually watches and waits for the CPI to reach stability soon thereafter. Most likely, history will repeat itself this time as well.