Euro trims gains against British Pound after UK CPI inflation rises to 2.9%
The EUR/GBP cross pares gains around 0.8555 during the early European trading hours on Wednesday. The British Pound (GBP) attracts some buyers against the Euro (EUR) following the UK inflation data.
The Euro (EUR) experienced a slight reduction in gains against the British Pound (GBP) on Wednesday following the UK's higher Consumer Price Index (CPI) inflation rate. The UK's headline CPI inflation increased to 2.9% year-over-year (YoY) in July, up from 2.6% in June. This rise can be attributed to a sharp increase in gas prices due to a higher household energy price cap.
However, core CPI, which excludes volatile food and energy items, remained steady at 2.6% YoY in July. Monthly, the headline CPI rose by 0.3% in July, compared to an increase of 0.1% in June. Economists at City banks anticipate one Bank of England (BoE) rate hike by year-end, which would raise the Bank rate from 3.75% to 4.0%. Eurozone inflation remains at 3%, and the European Central Bank (ECB) is expected to hike rates further.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
