UK August CPI +9.9% vs +10.2% y/y expected

• Prior +10.1%
• Core CPI +6.3% vs +6.3% y/y expected
• Prior +6.2%

The headline reading sees UK inflation fall back from double-digits in July, with August inflation up 0.5% on the month (vs estimates of 0.8%). A fall in the price of motor fuels made the largest downward contribution to the change in inflation last month while the largest upward contributions came from housing and household services (principally from electricity, gas and other fuels), transport, and food and non-alcoholic beverages.

But the core reading is seen ticking slightly higher and that won't provide much comfort in terms of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term developments overall. It will still keep the BOE on the tightening path while maintaining fresh worries on the economy as soaring price pressures grip households.

The pound is little changed on the data with cable sitting around 1.1500 at the moment, not much changed on the day as well.