Details of UK inflation for April 19 May 2015
- Prior 0.0%
- 0.2% vs 0.4% exp m/m. Prior 0.2%
- Core 0.8% vs 1.0% exp. Prior 1.0%
- RPI 0.4% vs 0.4% exp m/m. Prior 0.2%
- 0.9% vs 0.9% exp y/y. Prior 0.9%
- Ex-financials 0.9% vs 0.9% exp y/y. Prior 0.9%
Well it's confirmed that we've seen the first negative inflation since records began in 1996 (under EU methodology) and the first time since 1960 under comparable estimates
GBPUSD has lost another 40 odd pips from 1.5572
The blame is being put on the bunny, the Easter one that apparently saw travel costs fall due to the early break. The Easter break is usually a period where sea and air fares are higher but it fell outside of the accounting period and so cheaper prices were recorded. If that's true then we should see a snap back next month
As I mentioned in my preview though the price cuts from shops and businesses meant that the risk was more to the core than the headline and that's how it's panned out
UK CPI & Core y/y
