UK October CPI +2.3% vs +2.2% y/y expected

• Prior +1.7%
• Core CPI +3.3% vs +3.1% y/y expected
• Prior +3.2%

On the month itself, consumer prices were seen up 0.6% and core prices were seen up 0.4%. Both were seen just above estimates of 0.5% and 0.3% respectively. But the emphasis remains on core annual inflation, which came in higher than expected and also above the September reading.

This now reaffirms the BOE is most certainly going to keep the bank rate unchanged next month. GBP/USD is a touch higher on the day now, up 0.2% to 1.2705.

Looking at the details, services inflation remains a key sticking point. In core terms, services inflation was seen up slightly to 5.0% compared to 4.9% in the month before.

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