UK October CPI +4.6% vs +4.8% y/y expected

<ul><li>Prior +6.7%</li><li>CPI 0.0% vs +0.1% m/m expected</li><li>Prior +0.5%</li><li>Core CPI +5.7% vs +5.8% y/y expected</li><li>Prior +6.1%</li><li>Core CPI +0.3% vs +0.4% m/m expected</li><li>Prior +0.5%</li></ul><p>The pound is lightly lower on the data here as UK inflation falls more than expected in October. That being said, a lot of this has to do with base effects amid the high energy prices from last year. For some context, Ofgem's price cap at the time was £2,500 but is now at £1,834 for a typical household.</p><p>Core prices also did show some signs of easing, with the annual reading falling to 5.7% but it still remains high. The monthly reading also shows an increase of 0.3% so that is something to be wary about. But at least services inflation did ease slightly to 6.6% (previously 6.9%) and that should at least see the BOE breathe a little easier.</p>

This article was written by Justin Low at www.forexlive.com.