• Prior +8.7%
  • Core CPI +6.9% vs +7.1% y/y expected
  • Prior +7.1%

The pound is dragged lower as we see consumer inflation miss on estimates for the month of June. This is a positive development for the UK economy, and it does lead to lesser conviction for the BOE to go too overly hawkish. A 50 bps rate hike next month might have to be relooked, as I would think markets may now start to look towards 25 bps instead.

GBP/USD is down 0.5% to 1.2965 from around 1.3030 before the data was released.