Wednesday saw another high release of UK inflation data with figures creeping up to yet another 40-year high at 9.4%. Main contributors to inflation were a 42% year-on-year increase in energy prices and an almost 10% year-on-year increase for food prices.
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The British pound rose against a broadly struggling dollar but fell against a stronger euro as the latest economic data suggested the cost-of-living squeeze had not yet hit demand for staff in the UK.
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Sterling fell this morning against a strengthening U.S. dollar but jumped against the euro in July thinned trade with markets watching for any sign from the Bank of England on its monetary policy path.
UK Inflation is continuing to rise at unprecedented levels, reaching 9.1% in May. Fuel and energy prices have been the biggest drivers of inflation, which has brought inflation to it’s highest point since 1982.
The pound edged higher this morning, breaking a three-week losing streak versus the broadly struggling U.S. dollar as hawkish comments from policymakers supported the currency.
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