UK retail sales -0.2% m/m, unchanged y/y. Ex-fuel -0.1%m/m, -0.1%y/y

Vs expectations of -0.1%m/m and flat y/y

Slightly worse than expected but cable picking up around 25 pips on the reaction as inflation expectations rise

BOE forecasting August L/T inflation 3.5% vs 3.2% in May, 2 yr ahead inflation 3.5% vs 3.2% in May

GBP/USD ‘s at 1.5795

ONS adding- Cannot quantify effect of the UK riots on retail sales nas some benefitted and some lost