Details of the September 2016 UK CPI RPI and HPI data report 18 October 2016
– 0.2% vs 0.1% exp m/m. Prior 0.3%
– Core 1.5% vs 1.4% exp y/y. Prior 1.3%
Overall taking this report, it should be pound supportive but we’re not seeing anything after the initial spike to 1.2276. That might suggest that a lot of today’s rally was already expecting these higher numbers. House prices higher rules out the Brexit expectations of seeing the property market tumble, which again is another positive for the pound. The PPI numbers might be what’s holding things back as perhaps the market was expecting to see more of a pass through from the quid.