This article has been translated from English to Gen Z Slang.
Bruh, UK's price rise popped off to 3.6% year-on-year in June, up from 3.4% in May. 🤯 That's the biggest number since Jan 2024, and it might kill the vibe for some mad Bank of England rate cuts anytime soon. 💸
June CPI Report: The Tea
- Main CPI hit 3.6% yearly, throwing shade on the 3.4% prediction. Inflation vibe went up by 0.3% after just 0.1% in June 2024. 🔥
- Core CPI (ditchin' energy, food, drink, and smokes) jumped to 3.7% from 3.5% in May, showing price pressures ain't chillin'.
- CPIH (including living-in costs) cruised to 4.1% from 4.0%, way above the Bank's 2% aesthetic.
- Transport costs, especially motor fuel, delivered the biggest glow-up for the monthly number, but housing brought a lil' offset. 🚗
- Services inflation stayed solid at 4.7%, while goods inflation sped from 2.0% to 2.4%, hitting records since Oct 2023.
- Food and drink inflation snuck up to 4.5% from 4.4%, keepin' the rise for the third month straight. 🍔
Link to official ONS vibes on Consumer price inflation
This data deffo made life hard for the Bank of England, who's tryna juggle the whole inflation-keeping and growth-boosting stuff. Some might say they’ll still drop rates 'cause the economy be weak, but this inflation rise gives ammo to peeps who want to take it slow. 🛑
It showed that UK's tryna tame inflation, but services inflation is stubborn af at 4.7% — hella over the BoE’s target. Market peeps will keep their eyes peeled on UK job updates and other tea to see if this is a blip or a real trend that could make BoE switch gears.
Market Moves
GBP vs. The Major Players: 5-min tea
Overlay of GBP vs. Major Currencies Chart by TradingView
The British pound put out mixed vibes against major currencies post-inflation drop. It pumped hard initially against others as peeps saw the bigger number as cutting down chances of wild BoE changes.
However, the initial hype was chill and capped through the morning London sesh, implying peeps were ready for sticky inflation. 😅 Through the rest of Wednesday, GBP kept a bullish profile against the big players.
The overall chill and mixed mood may mean currency traders are still tryna balance the sticky inflation vibes with UK growth jitters, and uncertainty about BoE’s next move on the rate cut at the August meetup.
