25 Mar 2014
UK inflation falls to October 2009 low
FXStreet (London) - UK CPI has fallen in line with expectations, with February year-on-year inflation declining from 1.9 percent to 1.7 percent. The print indicates that UK headline inflation has fallen to its lowest level since October 2009.
Core prices rose as had been predicted following two months of softer prints. February year-on-year core CPI rose to 1.7 percent from 1.6 percent last month.
Lower fuel prices
According to the Office for National Statistics, the slowdown in inflation came primarily from the price movements of motor fuels. Petrol prices fell by 0.8 pence per litre between January and February this year compared with a rise of 4.0 pence per litre between the same two months a year ago. Similarly diesel prices fell by 0.8 pence per litre this year compared with a rise of 3.7 pence per litre a year ago.
Sterling climbs on CPI confirmation
Sterling has rallied strongly against the euro on the confirmation of what many had expected. EUR/GBP fell to a low of GBP0.8376 immediately following the UK CPI data release by the ONS before seeing some recovery. The pair is currently down 0.12 percent on the session so far at GBP0.8377.
Core prices rose as had been predicted following two months of softer prints. February year-on-year core CPI rose to 1.7 percent from 1.6 percent last month.
Lower fuel prices
According to the Office for National Statistics, the slowdown in inflation came primarily from the price movements of motor fuels. Petrol prices fell by 0.8 pence per litre between January and February this year compared with a rise of 4.0 pence per litre between the same two months a year ago. Similarly diesel prices fell by 0.8 pence per litre this year compared with a rise of 3.7 pence per litre a year ago.
Sterling climbs on CPI confirmation
Sterling has rallied strongly against the euro on the confirmation of what many had expected. EUR/GBP fell to a low of GBP0.8376 immediately following the UK CPI data release by the ONS before seeing some recovery. The pair is currently down 0.12 percent on the session so far at GBP0.8377.