http://www.fxwirepro.com/data/charts/GBPJPY.png.pngUK inflation statistics were published today that showed disinflationary pressure remains intact.
Producer price index dropped -1.7% in March y/y. Producer price index remained flat for core materials at 0% m/m.
House prices grew in March, however at slower pace than previous, grew 7.2% in March from a year ago. Much lower than February's 8.4% growth.
Retail price index further closed in towards zero level, grew 0.2% m/m lower than 0.5% in February. Retail price index grew 0.9% y/y in March, down from prior 1%.
Consumer price index remained flat on yearly basis in March, while price pressure eased even on core products. Core CPI fell to 1% growth from a year ago. Headline consumer price index grew at 0.2% m/m in March, down from prior 0.3%.
Data from UK continue to point at weakness in Industrial and economic activity along with lower inflation. Services sector however pushing overall GDP growth to much stronger levels.
Bank of England (BOE) despite shrugging of deflationary fears, are running out of options but to announce some kind of stimulus measure to tackle ongoing fall in prices and weak economic activities.
Pound has taken hit from weaker data trading at 1.461 against dollar. It was trading strong since yesterday traded as high as 1.469 against dollar, prior to inflation dockets release.
GBP/JPY has broken below 175 level, now trading at 174.9, down -0.67% today so far. Further downside remains open and pair might move towards 172 as initial target and then below 170 over election.
(Source:
http://fxwire.pro/UK-inflation-review-24565)
