GBP Edges Higher on UK CPI Data, Retreats Ahead of Fed Rate Hike
The British Pound (GBP) edged higher against the US Dollar (USD) on Wednesday following the release of UK Consumer Prices Index (CPI) data for August, but retreated to 1.3480 from session highs near 1.3500.
UK CPI accelerated to 0.5% in August from 0.3% in July, while the yearly CPI climbed to 3.1% from 2.9%, according to levels released by the UK Office for National Statistics on Wednesday.
The core CPI has remained growing at a steady 2.6% pace, in line with market expectations, but producer prices beat forecasts with the input Producer Price Index (PPI) rising to a 6.1% year-over-year rate in August from 4.9% in July, above the 5.4% market consensus.
The UK Office for National Statistics also reported that the Output PPI accelerated to 3.7% year-over-year from 3.1% in the previous month, surpassing the 3.3% market anticipation.