Sterling was choppy but broadly flat after the UK’s September CPI print came in above forecasts, and it was almost unchanged against the yen at around 211.45. Data from the Office for National Statistics showed headline CPI rising 3.5% year on year, compared with a 3.4% estimate and 3.1% in August. Core CPI, which strips out food, energy, alcohol and tobacco, increased 2.8% against expectations of 2.7% and 2.6% previously. On a monthly basis, CPI rose 0.4%, topping the 0.3% forecast but easing from 0.5% in the prior release.
UK Inflation and Rate Expectations
The inflation figures followed UK labour-market data for the three months to August that outperformed projections, a combination that can feed expectations for a Bank of England rate move at the November meeting. The BoE has kept rates at 3.75% so far this year. Separately, MPC member Megan Greene’s comments were assessed with a 7.4/10 reading on the FXS Speechtracker, matching her historic average.
Upcoming Japanese Inflation Data
In Japan, attention turns to September National CPI due on Friday.
